Paying someone to create artificial trading volume is wash trading, a form of market manipulation. In October 2024 the U.S. DOJ and SEC charged firms that sold such services as “market making” (Gotbit, CLS Global, ZM Quant, MyTrade) along with token promoters who hired them; Gotbit and its founder were later sentenced, with about USD 23 million ordered forfeited. Legitimate market makers are paid for spread, depth and uptime, never for a volume figure.
What prosecutors described
- Firms traded a client’s token between accounts they controlled to fake activity.
- Promoters used the fake volume to attract buyers and then sold.
- The FBI created its own token and hired the firms to gather evidence.
Legitimate vs illegitimate offers
| Legitimate market making | Wash-trading service |
|---|---|
| Two-sided quotes, KPIs on spread, depth, uptime | Daily volume targets, “volume support” |
| Contract bans self-trading | No such clause |
| Read-only data access | Screenshots only |
Details: market-maker enforcement cases, market making vs wash trading. Get legal advice for your jurisdiction.
Sources
- U.S. SEC press release 2024-166: SEC charges three so-called market makers
- U.S. DOJ: Eighteen individuals and entities charged in operation targeting crypto market manipulation (Oct 2024)
- U.S. DOJ: Gotbit and founder sentenced for market manipulation (2025)
Last reviewed 12 November 2026. Exchange and platform policies change; always confirm on the official page before acting.
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