TLDR
- Aleksei Andriunin, 26-year-old founder of Gotbit, indicted for wire fraud and market manipulation
- Scheme involved wash trading to artificially inflate crypto trading volumes from 2018-2024
- Company used sophisticated algorithms and multiple accounts to avoid detection
- Gotbit helped clients get listed on major platforms like CoinMarketCap through fake volume
- Andriunin faces up to 20 years in prison; transferred millions to personal Binance account
The U.S. Attorney’s Office for Massachusetts has indicted Aleksei Andriunin, the 26-year-old Russian founder of cryptocurrency market-making firm Gotbit, on charges of wire fraud and market manipulation.
The charges stem from a six-year operation that allegedly generated tens of millions of dollars through artificial trading volume.
Prosecutors say Andriunin orchestrated a sophisticated scheme between 2018 and 2024 that used wash trading to create the illusion of market activity for client cryptocurrencies.
Wash trading involves simultaneously buying and selling the same asset to create fake trading volume.
The company developed custom algorithms designed to evade detection while executing these artificial trades.
According to court documents, Gotbit maintained detailed spreadsheets tracking both legitimate and fabricated trading volumes for their clients’ tokens.
Gotbit’s services were specifically marketed to cryptocurrency projects seeking listings on major trading platforms.
The artificial volume helped these projects meet minimum requirements for listing on CoinMarketCap and other popular crypto tracking sites.
Sales director Qawi Jalili and market-making director Fedor Kedrov worked alongside Andriunin to expand the client base.
The team actively recruited customers by explaining their volume manipulation techniques and demonstrating their ability to influence market metrics.
To avoid detection, Gotbit allegedly used multiple trading accounts across different platforms. This distributed approach made it more difficult for exchanges and regulators to identify the coordinated trading activity.
The indictment reveals that Andriunin transferred millions of dollars in proceeds to his personal Binance account. U.S. Attorney Joshua S. Levy emphasized that the scheme “misled markets” through its use of sophisticated technology and concealed identities.
The case comes amid increased scrutiny of market makers in the cryptocurrency industry. Just two weeks before Andriunin’s indictment, U.S. authorities charged 18 individuals and companies in a separate international cryptocurrency fraud investigation focused on market making.
If convicted, Andriunin faces a maximum sentence of 20 years in prison for the wire fraud charges. Additional financial penalties may also be imposed.
The investigation uncovered extensive documentation of Gotbit’s operations, including internal communications and financial records that detailed the scope of the alleged fraud.
Court documents indicate that Gotbit’s manipulation extended across multiple cryptocurrency exchanges and affected numerous digital assets over the six-year period.
The firm’s clients reportedly sought Gotbit’s services specifically to create the appearance of market activity for their tokens, which helped them secure listings on larger exchanges.
Prosecutors allege that the wash trading scheme not only misled individual investors but also compromised the integrity of market data used by the broader cryptocurrency industry.
Trading records show that Gotbit executed millions of artificial transactions, creating false impressions of market demand and liquidity for various cryptocurrencies.
The case remains active, with authorities continuing to investigate potential connections to other market manipulation schemes in the cryptocurrency sector.