Aleksei Andriunin, founder of the crypto services firm Gotbit, has been indicted in the U.S. on charges of wire fraud and conspiracy to commit market manipulation. Gotbit, a self-claimed “market maker,” allegedly orchestrated artificial trading volumes to boost the visibility of cryptocurrencies on exchanges, using “wash trades” to deceive investors and authorities.
Key Points:
- Key Accusations: Gotbit’s founder Aleksei Andriunin, 26, and directors Fedor Kedrov and Qawi Jalili face charges of wire fraud and conspiracy in a market manipulation scheme.
- Wash Trading for Exposure: Gotbit (website) allegedly inflated trading volumes through wash trades to secure listings on prominent platforms like CoinMarketCap, manipulating market perception.
- Millions in Profits: Gotbit is accused of handling millions of dollars in wash trades, earning tens of millions from clients, including Saitama and Robo Inu, who face separate charges.
- Potential Penalties: Charges carry up to 20 years in prison, significant fines, and asset forfeiture for the accused.
Short Narrative:
Aleksei Andriunin, Gotbit’s 26-year-old founder and CEO, is under indictment for his role in an alleged wide-reaching cryptocurrency manipulation conspiracy. Gotbit marketed itself as a “market maker,” yet allegedly engaged in deceptive practices between 2018 and 2024, inflating trading volumes for various cryptocurrencies to lure investors and increase exchange visibility. Gotbit’s tactics involved coded wash trades and concealed transactions, with high-profile clients reportedly paying millions for the firm’s fraudulent services.
The superseding indictment also charges Gotbit and two of its directors, Fedor Kedrov and Qawi Jalili, who were previously charged in an indictment unsealed on Oct. 9, 2024.
Actionable Insight:
With market manipulation tactics uncovered, regulators may intensify their focus on cryptocurrency market “makers.” Exchanges and platforms could face heightened scrutiny over listing standards and trade legitimacy.
Prosecutors allege that Gotbit developed software specifically designed to carry out wash trades, creating misleading trading activity to deceive investors and exchanges
Call for Information:
Have insights on other crypto market manipulation schemes? Contact FinTelegram with tips and help expose the players behind market manipulation.
