- Gotbit’s CEO Aleksei Andriunin faces charges for alleged wash trading to inflate crypto volumes from 2018 to 2024.
- Authorities allege Gotbit’s fraudulent schemes secured millions in fees and led to manipulated trading volumes for clients.
- Gotbit clients, including Saitama and Robo Inu, implicated as Andriunin allegedly funneled millions into personal Binance accounts.
Aleksei Andriunin, Founder and CEO of Gotbit, a cryptocurrency financial services firm, faces serious charges for orchestrating market manipulation schemes between 2018 and 2024. U.S. authorities have indicted Andriunin alongside Gotbit and its directors, Fedor Kedrov and Qawi Jalili, for conspiracy to commit market manipulation and wire fraud. These charges come after an earlier indictment was revealed on October 9, 2024.
Allegations of Artificial Trading and Wash Trades
According to court filings, Gotbit served as a “market maker” known for its services that artificially inflated trading volume for various cryptocurrency companies. Andriunin allegedly admitted in a 2019 interview that he designed a program to conduct “wash trading”, a practice that artificially boosts the appearance of trading activity.
The goal was to secure listings for clients on platforms like CoinMarketCap and facilitate trading on larger exchanges. Records reportedly kept by Andriunin highlight the difference between the “Created Volume” generated by wash trades and legitimate “Market Volume.”
Gotbit’s employees, including Kedrov, the Director of Market Making, and Jalili, the Director of Sales, allegedly marketed these services to prospective clients. They explained techniques used to avoid detection on public blockchains, employing multiple accounts to carry out transactions without raising suspicion. Authorities allege these practices led to millions in fraudulent trades, generating significant revenue for Gotbit while deceiving investors about the liquidity of various cryptocurrencies.
Client Involvement and Financial Proceeds
The indictment also identifies some of Gotbit’s clients, including cryptocurrencies Saitama and Robo Inu, whose leaders now face separate charges. Court documents indicate that Andriunin transferred substantial proceeds from these operations into his personal Binance account. Gotbit’s services purportedly garnered tens of millions of dollars from wash trading activities.
Legal Consequences and Withdrawals
The charge of wire fraud carries a maximum sentence of 20 years in prison, supervised release of up to three years, and significant financial penalties, including restitution and forfeiture.
The charge of conspiracy to commit market manipulation could result in up to five years in prison and similar financial repercussions. Acting U.S. Attorney Joshua S. Levy and FBI Boston Division’s Jodi Cohen announced the indictment, with the case prosecuted by Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb.
Following these, Neiro, previously in partnership with Gotbit, withdrew its association. The firm assured its community that new, reputable market makers would soon replace Gotbit to align with Neiro’s long-term vision.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
