gotbit

Aleksei Andriunin, founder and CEO of the cryptocurrency market-making firm #Gotbit , has consented to forfeit approximately $23 million in USDT and USDC as part of a plea agreement with U.S. federal prosecutors. This development follows charges of wire fraud and market manipulation linked to Gotbit’s alleged involvement in artificially inflating trading volumes for various cryptocurrencies between 2018 and 2024.
In a significant legal development, Aleksei Andriunin, the 26-year-old Russian founder and CEO of #GotbitExchange , has entered into a plea agreement with federal prosecutors in Massachusetts. As part of this deal, Andriunin has agreed to forfeit approximately $23 million held in Tether (USDT) and USD Coin (USDC). This agreement addresses charges of wire fraud and conspiracy to commit market manipulation and wire fraud.

Gotbit, established in 2017 and registered in Belize, operated as a cryptocurrency market-making firm. The company allegedly provided services designed to artificially inflate trading volumes for various #cryptocurrency tokens, including those of U.S.-based firms. This practice, commonly referred to as “wash trading,” involves executing trades without market risk to create a misleading appearance of liquidity and demand.   

According to court documents, Gotbit’s activities spanned from 2018 to 2024, during which the firm is accused of orchestrating widespread cryptocurrency market manipulation. The U.S. Department of Justice asserts that these manipulations deceived investors and disrupted the integrity of cryptocurrency markets.

Andriunin’s legal troubles escalated in October 2024 when he was arrested by Portuguese authorities and subsequently extradited to the #UnitedStates . Following his extradition, he appeared in a federal court in Boston, Massachusetts, where he was ordered to remain detained pending further proceedings.

The plea agreement stipulates that Andriunin will plead guilty to three counts, including conspiracy to commit wire fraud and market manipulation. In addition to the $23 million forfeiture, the agreement acknowledges that this forfeiture does not preclude the imposition of additional penalties, fines, or restitution that the court may deem appropriate.
It’s important to note that this agreement is solely between Andriunin and the U.S. Attorney’s Office for the District of Massachusetts. It does not bind other federal, state, or local prosecuting authorities. Furthermore, the court is not obligated to adhere to the sentencing recommendations proposed in the plea agreement, and Andriunin cannot withdraw his guilty plea based on disagreements with the court’s sentencing decisions.
This case underscores the U.S. government’s commitment to pursuing fraudulent activities within the cryptocurrency industry. It serves as a cautionary tale for market participants about the legal repercussions of engaging in deceptive trading practices.

As the cryptocurrency market continues to evolve, regulatory scrutiny is intensifying to ensure transparency and protect investors from manipulative schemes. The outcome of Andriunin’s case may set a precedent for how similar cases are handled in the future, emphasizing the importance of ethical conduct in the rapidly growing digital asset space.
#AltcoinDigest

Almost six months ago, #Gotbit CEO #Andryunin was arrested for financial fraud involving cryptocurrencies. He faced up to 25 years in prison, but instead, it was announced that the US authorities would forfeit $23 million worth of his crypto assets. 💰

This amount will likely be added to the US crypto reserve, which, as revealed earlier, is only replenished through confiscations, not government purchases.

It seems that now many crypto offenders might have a legal way out—contribute to the "development of the US reserve" and walk free. But is this really a fair solution? 🤔
#USCRYPTORESERVES

Gotbit Founder Faces Fraud Allegations
Aleksei Andriunin, the founder of Gotbit, has been extradited from Portugal to the United States to face charges of fraud and cryptocurrency market manipulation. The 26-year-old Russian entrepreneur was arrested on October 8, 2024, and was transferred to U.S. custody on February 25, 2025. A federal court in Boston has ordered him to remain in custody until his next hearing.
His extradition comes at a time when global authorities are stepping up efforts to crack down on financial crimes within the cryptocurrency sector. This follows the recent extradition of Terraform Labs founder Do Kwon, who was also transferred to the U.S. to face fraud charges related to the collapse of the Terra blockchain ecosystem.
Gotbit's Role in Market Manipulation
Aleksei Andriunin was indicted by a Boston grand jury in October 2024. Prosecutors claim that Gotbit was involved in large-scale market manipulation between 2018 and 2024. Alongside Andriunin, two Gotbit executives, Fedor Kedrov and Qawi Jalili, were also charged but remain at large.
Investigators allege that Gotbit specialized in "wash trading," an illegal practice that artificially inflates trading volumes to mislead investors. This method reportedly helped digital assets appear more active than they actually were, securing listings on major cryptocurrency tracking platforms such as CoinMarketCap.
Court filings suggest that Gotbit generated tens of millions of dollars in revenue from these fraudulent activities. Prosecutors also claim that Andriunin personally transferred millions of dollars to his Binance account. If convicted, he faces up to 20 years in prison for wire fraud and an additional five years for market manipulation conspiracy.
FBI’s Operation Token Mirrors Targets Crypto Fraud
Andriunin’s arrest and extradition are part of a broader investigation into cryptocurrency-related fraud. The FBI launched Operation Token Mirrors, an initiative that has already resulted in charges against 15 individuals and three companies involved in market manipulation.
As part of this investigation, FBI agents developed a digital token to track fraudulent trading activities. Their efforts led to the discovery of multiple schemes designed to artificially boost cryptocurrency prices. Authorities claim that the Gotbit case is one of the largest market manipulation investigations in the history of crypto.
The indictment against Andriunin comes as law enforcement agencies worldwide intensify efforts to combat financial crimes in the digital asset industry. For example, Do Kwon, former CEO of Terraform Labs, was recently extradited to the U.S. after being arrested in Montenegro. He faces fraud charges related to the collapse of TerraUSD and Luna, which resulted in billions of dollars in investor losses.
How Gotbit Manipulated the Crypto Market
Gotbit marketed itself as a crypto market-making firm, but investigators say its operations extended into deceptive trading practices. The company allegedly used multiple accounts to execute fake transactions, making some cryptocurrencies appear more active and valuable than they actually were.
In a 2019 interview, Andriunin reportedly bragged about developing software that could conduct wash trading without detection. Prosecutors allege that these fraudulent tactics helped various cryptocurrency projects attract investors under false pretenses. Some of the digital assets linked to Gotbit’s services include Saitama and Robo Inu, both of which are now under investigation.
Authorities believe that this kind of market manipulation misled investors and distorted market data, ultimately harming traders who relied on inaccurate information. A similar fraudulent scheme was recently uncovered in the case of the LIBRA token, which led to massive financial losses for investors.
By artificially inflating trading volumes, Gotbit allegedly allowed lesser-known cryptocurrencies to gain credibility and access major exchanges.
What’s Next?
Aleksei Andriunin’s extradition was the result of cooperation between the U.S., Portugal, and Interpol. His case is now being handled by the U.S. Attorney’s Office in Massachusetts, which has been actively prosecuting cryptocurrency-related fraud.
Andriunin has not yet entered a plea, and his legal team has not issued any public statements. Meanwhile, Gotbit executives Kedrov and Jalili remain at large, indicating that the investigation is ongoing.
This case highlights the increasing regulatory scrutiny on the cryptocurrency sector, as law enforcement agencies ramp up efforts to combat fraud and manipulation within digital asset markets.

#Gotbit , #CryptoNewss , #CryptoFraud , #Cryptoscam , #CryptoSecurity

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Days after the US government announced unprecedented criminal and civil charges against four cryptocurrency companies for market manipulation and “wash trading,” meme coin projects dependent on those same firms have begun trying to distance themselves from the fallout.