The founder of Crypto 'Market Maker' company Gotbit is currently facing charges of wire fraud.

If convicted of wire fraud, they could potentially face up to 20 years in prison. In addition, those found guilty of market manipulation may receive a jail term of five years.

The founder of crypto firm Gotbit has been indicted by the US Department of Justice (DOJ) for engaging in market manipulation and wire fraud.
Aleksei Andriunin, a Russian national, was implicated in "a wide-ranging conspiracy" aimed at manipulating crypto markets for client companies.
Between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for various crypto firms.
The updated indictment has also named Gotbit and two of its directors, Fedor Kedrov and Qawi Jalili, who are already facing charges related to crypto "wash trading". Andriunin allegedly maintained records of Gotbit’s market manipulation, as stated in the DOJ release. He possessed spreadsheets comparing "Created Volume" from wash trades with the naturally occurring "Market Volume. "

Furthermore, Andriunin and the firm’s directors promoted wash trading strategies to potential clients. They further detailed how Gotbit employed numerous accounts to evade detection for wash trades on the public blockchain.

Moreover, Gotbit's clientele encompass meme coins Saitama and Robo Inu. These two coins have been implicated in a pump-and-dump scheme. Andriunin transferred proceeds worth millions of dollars from Gotbit to his personal Binance account, as highlighted by the DOJ. Gotbit and Others Involved in Widespread Crypto Market Manipulation Fraud

In October, federal prosecutors charged three crypto companies including Gotbit, ZM Quant, CLS Global, and 15 individuals with “widespread” market manipulation fraud. This enforcement action led to the arrest of four individuals and the negotiation of five plea agreements. Authorities have also confiscated cryptocurrency valued at more than $25 million.

Andriunin was charged on October 9 for his suspected participation in the fraud.

These cases involve the encounter between an innovative technology, cryptocurrency, and a century-old scheme, the pump and dump. Today's message is clear: deceiving investors with false statements amounts to fraud," declared Joshua Levy, Acting US Attorney. The Department of Justice's current charges for wire fraud could potentially lead to a 20-year prison sentence, along with a maximum of three years of supervised release, a fine of up to $250,000 or double the gains or losses from the crime, as well as restitution and forfeiture.

However,
for market manipulation charges,
the jail term is five years.