Key Points
* Aleksei Andriunin, 26, founder and CEO of crypto firm Gotbit, has been indicted for orchestrating a massive market manipulation scheme between 2018-2024, allegedly using “wash trading” to artificially inflate cryptocurrency trading volumes.
* The scheme involved multiple cryptocurrencies, including U.S.-based companies, with Gotbit receiving tens of millions of dollars for their fraudulent services.
Charges and Allegations
A superseding indictment filed in the District of Massachusetts has charged Russian national Aleksei Andriunin, who resides in Portugal, with wire fraud and conspiracy to commit market manipulation. The charges also extend to his company Gotbit and two directors, Fedor Kedrov and Qawi Jalili, who were previously indicted in early October 2024.
The Manipulation Scheme
According to court documents, Gotbit operated as a “market maker” in the cryptocurrency industry, but allegedly engaged in systematic market manipulation. In a 2019 interview, Andriunin reportedly disclosed developing code specifically for “wash trading” – a practice used to create artificial trading volume. The company’s goal was to manipulate cryptocurrencies’ visibility on platforms like CoinMarketCap and secure listings on major cryptocurrency exchanges.
The firm maintained detailed records of their activities, including spreadsheets comparing artificially “Created Volume” against natural “Market Volume.” Gotbit’s employees, including Sales Director Jalili and Market Making Director Kedrov, actively marketed these deceptive trading strategies to potential clients, explaining their methods for avoiding detection on public blockchains.
Legal Consequences
The charges carry significant potential penalties:
* Wire fraud: Up to 20 years in prison, three years of supervised release, and fines up to $250,000 or twice the gross gain/loss
* Conspiracy to commit market manipulation and wire fraud: Up to 5 years in prison, three years of supervised release, and similar financial penalties
Both charges may also result in restitution and forfeiture requirements. Final sentencing will be determined by a federal district court judge based on U.S. Sentencing Guidelines and applicable statutes.
