Aleksei Andriunin, the founder and CEO of Gotbit Consulting, was sentenced to eight months in jail on Friday following a federal investigation right into a multi-million-dollar wash buying and selling operation.
The 26-year-old, a twin citizen of Russia and Portugal, pleaded responsible earlier this 12 months to wire fraud and conspiracy to commit market manipulation.
Gotbit Ordered to Stop Operations After Fraud Conviction
The sentencing came about in Boston, the place U.S. District Courtroom Decide Angel Kelley additionally ordered one 12 months of supervised launch for Andriunin. He was arrested in Portugal in October 2024 and extradited to america in February 2025.
Gotbit Consulting LLC, which was extensively identified within the crypto trade as a market maker, acquired 5 years of probation. The corporate was additionally ordered to forfeit roughly $23 million in seized cryptocurrency. As a part of the sentence, the agency will stop operations.
On account of an #FBI Boston investigation, Gotbit Consulting, a monetary providers agency identified within the crypto trade as a “market maker,” & its founder Aleksei Andriunin, of Russia & Portugal, have been sentenced for market manipulation & fraud conspiracy. https://t.co/CNpz0BD4aE pic.twitter.com/jIFg1Z3nt6
— FBI Boston (@FBIBoston) June 13, 2025
Prosecutors stated that between 2018 and 2024, Gotbit manipulated cryptocurrency buying and selling volumes to provide the looks of energetic markets.
The agency marketed these providers to crypto firms in search of listings on main platforms, together with CoinMarketCap and centralized exchanges.
Gotbit founder was concerned in “a wide-ranging conspiracy” to control crypto markets on behalf of consumer firms.#CryptoFraud #Gotbit #USDOJhttps://t.co/nP4lEodLky
— Cryptonews.com (@cryptonews) November 1, 2024
In a 2019 interview, Andriunin brazenly described how he developed algorithms to hold out wash trades, basically shopping for and promoting the identical asset to inflate quantity and affect token listings.
Courtroom paperwork revealed that Gotbit’s crew used a number of wallets to masks these trades on public blockchains, making detection tougher.
“Gotbit’s actions have been designed to deceive each traders and market platforms by fabricating the looks of energetic buying and selling,” stated U.S. Legal professional Leah Foley. “This sentencing holds them accountable and sends a message to others within the trade.”
Gotbit admitted to manipulating the token costs and volumes of a number of shoppers, together with Robo Inu and Saitama, whose executives have been charged in separate circumstances unsealed final 12 months.
Aleksei Andriunin, the founding father of Gotbit, has been extradited to america, the place he faces expenses of market manipulation.#Gotbit #Fraudhttps://t.co/zEt7STILTA
— Cryptonews.com (@cryptonews) February 27, 2025
The scheme allowed the agency to gather tens of hundreds of thousands of {dollars} in charges from crypto initiatives in search of consideration and legitimacy. Executives from these firms face separate prison expenses unsealed final 12 months.
The Division of Justice named two different Gotbit executives, Fedor Kedrov and Qawi Jalili, in an October 2024 indictment. Each stay charged within the ongoing case.
Gotbit Case Tied to Broader Wash Buying and selling Crackdown
The Gotbit case is the newest in a string of federal actions concentrating on wash buying and selling within the crypto market.
Following the prison sentencing of Gotbit’s CEO and the agency’s shutdown, the U.S. Securities and Trade Fee filed a civil go well with in opposition to the corporate for violating securities legal guidelines.
It’s the third main enforcement case in opposition to a crypto market maker in latest months, preceded by comparable actions in opposition to MyTrade in October 2024 and CLS International in April 2025.
All three have been uncovered by way of a sweeping undercover operation led by the FBI’s Boston Division.
Performing particular agent Kimberly Milka stated the company stays dedicated to “pursuing those that manipulate markets for revenue.”
Federal prosecutors charged 15 individuals and a number of companies, together with Gotbit, ZM Quant, and CLS International, with market manipulation in late 2024.
SEC cracks down on UAE-based CLS International for crypto wash buying and selling, imposing $425K+ penalties and banning U.S. operations in market manipulation case.#CryptoRegulation #SEChttps://t.co/eBMw9cROza
— Cryptonews.com (@cryptonews) April 17, 2025
The crackdown resulted in 4 arrests, 5 plea offers, and over $25 million in crypto asset seizures.
In April, CLS International was fined over $428,000 and barred from working within the U.S. for 3 years.
Wash buying and selling, the place a dealer buys and sells the identical asset to inflate quantity, stays a widespread situation.
Chainalysis estimates at the least $2.6 billion in wash-traded quantity throughout the crypto market, with some research suggesting the precise determine may very well be far increased.
The submit Gotbit Collapse: $23M Wash-Buying and selling Scheme Nets CEO Jail, SEC Civil Swimsuit Imminent appeared first on Cryptonews.