Outside Source
Federal prosecutors in Boston have indicted Aleksei Andriunin, a 26-year-old Russian national and founder of Gotbit, on charges of wire fraud and conspiracy to commit market manipulation.
According to the U.S. Attorney’s Office, the indictment alleges that Andriunin and his firm participated in a long-running scheme to artificially boost trading volumes for various cryptocurrency companies, including some based in the United States, to make them appear more popular and increase their trading value.
Andriunin allegedly led these activities between 2018 and 2024 as Gotbit’s CEO. He could face up to 20 years in prison, additional fines, and asset forfeiture if convicted, according to the U.S. Attorney’s Office.
Gotbit was one of several firms mentioned in an FBI operation that resulted in the arrest of 18 individuals charged with manipulating the cryptocurrency market using a fake cryptocurrency called NexFundAI. This operation led to the seizure of $25 million and aimed to expose fraudulent trading practices and disable wash trading bots.
Gotbit and wash trading
Prosecutors say the scheme involved “wash trading,” where the firm used its software to make fake trades that inflated a cryptocurrency’s trading volume.
This practice, called market manipulation, can mislead investors by giving the impression that demand for a particular cryptocurrency is higher than it actually is.
Wash trades are illegal in traditional finance and are considered fraudulent because they deceive investors and manipulate market behavior.
Co-conspirators
Court documents also identify Gotbit’s two directors, Fedor Kedrov and Qawi Jalili, as co-conspirators.
The indictment claims Gotbit documented these activities in detailed records, tracking differences between genuine and artificial trading volumes. The firm allegedly pitched these services to prospective clients, explaining how Gotbit’s tactics would bypass detection on public blockchains, where transactions are recorded transparently.
The U.S. Department of Justice has announced that it seized over $25 million worth of cryptocurrency assets connected to these schemes and made four arrests across multiple firms.
This article first appeared at crypto.news
