Cryptocurrency chief facing extradition from UK to US on fraud charges

LONDON, Aug 26 (Reuters) – The British-based chief executive of a cryptocurrency company who is wanted in the United States on charges of wire fraud and market manipulation faces being sent ​to the U.S. to stand trial after he lost ‌his fight against extradition last week.

Manpreet Kohli, a 45-year-old Indian national, was the leader of Saitama, a company that promoted a token on the ethereum blockchain, which at one point had a market value of $7.5 billion.

He was arrested in London ‌in ​2024 after U.S. prosecutors accused him and more ⁠than a dozen others ⁠of engaging in widespread fraud, following an investigation in which the FBI for the first time set up a digital token to ferret out crime.

Prosecutors alleged Kohli and his co-conspirators claimed to be ​holding and purchasing Saitama tokens, while privately selling them for millions of dollars in profit. Kohli is said to have made ⁠around $20 million.

Kohli fought against extradition, including on ⁠the grounds that in the U.S. there would be ​inadequate measures to prevent him taking his own life in custody.

But Judge ​Samuel Goozee rejected Kohli’s challenge on August 19 and ‌sent his case to British ministers to decide whether to order his extradition, a step which is usually a formality.

“I find there are clearly appropriate arrangements in place both during transit and within the prison ⁠system in the U.S. to be able to cope with (Kohli’s) mental health and reduce the risk of suicide to an acceptable level,” Goozee said in ⁠his ruling.

Kohli remains ‌free on £200,000 ($272,420) bail and can appeal against the ⁠ruling. He could not be contacted for comment.

Earlier this ​month, ‌a federal judge in Boston rejected his bid ​to have ⁠the indictment against him dismissed on the grounds that the Saitama token cannot legally be considered a security subject to regulation under U.S. securities law.

Kohli’s U.S. lawyer did not immediately respond to a request for comment.

($1 = 0.7342 pounds)

(Reporting by Sam Tobin in London and Nate Raymond in Boston;Editing ​by Tomasz Janowski)