Recently, the FBI has taken quite strong action against crypto market makers. They have indicted 10 individuals from four market-making firms including Gotbit, Vortex, Antier, and Contrarian. The charges are primarily for colluding to inflate trading volume and token prices, then selling at high levels to profit from retail investors.

The way the FBI discovered this is also quite interesting. They created fake tokens as bait, then recorded these market makers agreeing to provide pump-and-dump services. The so-called "manipulation-as-a-service" — inflating prices and creating fake volume before dumping on unsuspecting traders. This tactic has been used by the FBI since 2024, arresting 18 people, but in 2026, they expanded the investigation further.

In reality, these market makers originally played a legitimate role — providing liquidity to reduce slippage and make trading smoother. But when exploited, they become tools to distort crypto prices and manipulate the market. It is estimated that over 75% of listed tokens have fallen close to zero over time, indicating the high risks associated with such manipulative behaviors.

The individuals indicted include Contrarian CEO Manu Singh and employee Vasu Sharma, who were arrested in Singapore and extradited, along with Vortex CEO Gleb Gora. If convicted, they could face up to 20 years in prison. This case also highlights the growing need for tighter regulation in the crypto space. Major exchanges have started implementing new rules for market makers and warning of strict sanctions against violators, which could change how the crypto market operates in the near future.