Saitama CEO Manpreet Kohli has lost a key UK court bid in a high-profile case tied to what prosecutors describe as a $7.5 billion token fraud, and could now be extradited to the United States to face charges. What happened - A UK judge rejected Kohli’s appeal and on August 19, 2026 sent the extradition request to British ministers, who must now decide whether to hand him over to US authorities, Reuters reported. Kohli, a 45-year-old Indian national living in the UK, remains free on £200,000 bail while the political decision is made. - US prosecutors have charged Kohli with wire fraud and cryptocurrency market manipulation. They allege he personally took nearly $20 million while Saitama promoters publicly claimed to hold or buy tokens even as they were privately selling them — behavior critics and regulators characterize as manipulation and deceptive token distribution. Investigation and evidence - The case attracted attention from the FBI, which reportedly deployed a new investigative capability called NexFundAI to probe suspicious activity such as wash trading and artificially inflated trading volumes tied to Saitama. The bureau also used undercover agents to track alleged trading activity and uncover cover-ups by members of the project team. Legal timeline and context - Kohli was first arrested in London in 2024 after multiple individuals and businesses accused him of manipulating the crypto market and sought help from US authorities. - At the final hearing, Judge Samuel Goozee said there were “clearly appropriate arrangements in place both during transit and within the prison system in the US,” and addressed concerns about Kohli’s mental health, stating measures had reduced any suicide risk “to an acceptable level.” Kohli can only pursue further appeals after the UK government ministers review the extradition request. Why it matters - If ministers approve extradition, Kohli would face trial in the US on allegations that touch on two major enforcement themes in crypto: deceptive token sales/manipulation and the use of wash trading to mislead investors. The outcome could have implications for how regulators and law enforcement pursue cross-border crypto fraud and the technologies they use to uncover market abuse. We’ll update as British ministers make their decision and if US prosecutors set out trial dates or additional charges. Read more AI-generated news on: undefined/news