BOSTON – Gotbit Consulting LLC (Gotbit), a monetary providers agency identified within the cryptocurrency trade as a “market maker,” and its founder pleaded responsible at present in federal courtroom in Boston to prison expenses relating to Gotbit’s fraudulent manipulation of cryptocurrency buying and selling quantity on behalf of shopper cryptocurrency firms.
Aleksei Andriunin, 26, of Russia and Portugal, and Gotbit, pleaded responsible to expenses of wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin was arrested in Portugal on Oct. 8, 2024 and extradited to america on Feb. 25, 2025.
Gotbit and Andriunin have been indicted by a federal grand jury on the identical expenses in October 2024. The indictment additionally expenses two of Gotbit’s administrators, Fedor Kedrov and Qawi Jalili.
As alleged in courtroom paperwork, Gotbit was a well known “market maker” within the cryptocurrency trade. Between 2018 and 2024, Gotbit supplied market manipulation providers to create synthetic buying and selling quantity for a number of cryptocurrency firms, together with firms positioned in america and firms whose cryptocurrencies traded on platforms obtainable to buyers positioned in america. Andriunin was Gotbit’s Founder and Chief Govt Officer. In a 2019 interview, Andriunin described how he developed a code to “wash commerce” cryptocurrencies to artificially inflate buying and selling quantity for the aim of getting cryptocurrencies listed on CoinMarketCap (an internet site that printed details about “trending” cryptocurrencies) and buying and selling on bigger cryptocurrency exchanges. Andriunin and Gotbit’s workers marketed these wash buying and selling techniques to potential shoppers and defined how Gotbit used a number of accounts to keep away from detection of the wash trades on the general public blockchain. Gotbit made wash trades value tens of millions of {dollars} on behalf of shoppers and obtained tens of tens of millions of {dollars} in funds from shoppers.
In reference to its plea, Gotbit admitted that it engaged in manipulative trades to artificially improve the buying and selling worth and quantity of tokens for shoppers that included Robo Inu and Saitama. Leaders of these cryptocurrency firms have been charged in separate cases unsealed in October 2024.
As half of at present’s criminal resolution, Gotbit agreed to stop all operations and forfeit roughly $23 million in seized cryptocurrency. Pursuant to the plea agreement with Andriunin, the federal government will advocate a sentence of up to two years in jail.
Gotbit is the third market maker to resolve prison expenses relating to wash buying and selling within the cryptocurrency trade. In October 2024, the founder of MyTrade pleaded responsible in reference to offering an illegal wash buying and selling service recognized by means of an undercover legislation enforcement operation. In January 2025, CLS World FZC LLC pleaded responsible in reference to providing unlawful “quantity help” providers uncovered by the identical operation.
The Securities & Change Fee introduced a associated civil enforcement motion towards Gotbit alleging violations of the securities legal guidelines.
The cost of wire fraud offers for a sentence of up to 20 years in jail, up to three years of supervised launch, a tremendous of up to $250,000 or twice the gross achieve or loss from the offense, restitution and forfeiture. The cost of conspiracy to commit market manipulation and wire fraud offers for a sentence of up to 5 years in jail, up to three years of supervised launch, a tremendous of up to $250,000 to twice the gross achieve or loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district courtroom choose based mostly upon the U.S. Sentencing Tips and statutes which govern the dedication of a sentence in a prison case.
United States Lawyer Leah B. Foley and Jodi Cohen, Particular Agent in Cost of the Federal Bureau of Investigations, Boston Division made the announcement. Beneficial help was supplied by the FBI’s Authorized Attaché (Madrid) in addition to Portugal’s Policia Judiciaria and Procuraduría Common de la República. The Justice Division’s Workplace of Worldwide Affairs coordinated with Portuguese authorities to safe the arrest and extradition of Andriunin. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the case. Assistant U.S. Lawyer Carol Head, Chief of the Asset Restoration Unit is dealing with the forfeiture matter.
The main points contained within the charging paperwork are allegations. The remaining defendants are presumed to be harmless except and till confirmed responsible past an affordable doubt within the courtroom of legislation.
