The operator of MyTrade, a cryptocurrency "market maker," has pled guilty as part of a recent crackdown by U.S. authorities on market manipulation. This comes as over a dozen firms faced accusations of engaging in similar activities, primarily involving wash trading.

Liu Zhou, 39, whose operations spanned between China and Canada, acknowledged his involvement in inflating asset prices through deceptive trading practices on various crypto exchanges. The Department of Justice (DOJ) described this as engaging in actions that misrepresent market interest and artificially manipulate prices for gain.

In allegations detailed in federal documents, firms including Gotbit, CLS Global, and ZM Quant purportedly executed wash trades to falsely inflate their trading volumes. Zhou’s firm reportedly utilized self-trading strategies and offered to execute manipulative volume tactics to benefit financially at the expense of other traders.

In parallel, CLS Global has initiated communication with U.S. authorities, indicating a willingness to cooperate and suggesting areas for improvement in their operations. CEO Filipp Veselov expressed openness to dialogue, underscoring a shift towards regulatory compliance.

"We recognize that there may be areas where we can improve our processes, and we are open to constructive dialogue with regulatory authorities."

Zhou is set to face sentencing next year for his participation in this fraud scheme.