MyTrade Founder Fined $10K for Crypto Wash Trading Bots
MyTrade Founder Fined $10K Over Bots That Wash Traded 60 Cryptocurrencies
A founder of crypto platform MyTrade has been fined $10,000 over the use of trading bots that generated wash trading activity across 60 cryptocurrencies.
According to the case details provided, the bots were used to create trading activity that effectively involved trades being made without a genuine change in market exposure. This type of conduct is generally referred to as wash trading, a practice regulators and market operators view as misleading because it can inflate reported volume and create a distorted impression of market interest and liquidity.
The fine centers on the founder’s responsibility for bot-driven activity rather than organic trading. While automated trading tools are common in crypto markets, enforcement actions typically focus on whether automation is being used to simulate demand or supply rather than facilitate legitimate execution.
The episode matters beyond MyTrade because wash trading has been a recurring concern in crypto market structure. Reported trading volume is widely used by exchanges, token projects, and data providers as a signal of liquidity and relevance. When that number is artificially inflated, it can affect how assets are ranked, how platforms are perceived, and how participants evaluate risk when entering or exiting positions.
Regulators have increasingly treated wash trading as a market integrity issue, particularly when it obscures true activity and potentially misleads users. The MyTrade case highlights how enforcement can extend to the individuals behind platforms and tooling, not only to the venues where trading occurs.
