Crypto ‘Market Maker’ Gotbit Founder Faces Wire Fraud Charges
For wire charges, the sentence is upto 20 years in prison and for market manipulation, the jail term is five years.
The US Department of Justice (DOJ) indicted the founder of crypto firm Gotbit over market manipulation and wire fraud. Russian national Alexei Andryunin was involved in a "large-scale conspiracy" to manipulate cryptocurrency markets on behalf of corporate clients. Between 2018 and 2024, Gotbit provided various cryptocurrency companies with market manipulation services that created artificial trading volumes. The superseding indictment also indicts Gotbit and two of its directors, Fedor Kedrov and Kawi Jalili, who are already accused of cryptocurrency "money laundering."
According to a Ministry of Justice press release, Andriunin allegedly kept traces of Gotbit's market manipulation. He had records of spreadsheets that compared “Created Volume” from wash trades with naturally occurring “Market Volume.”
Further, Andriunin and the firm’s directors marketed wash trading tactics to prospective clients. They also explained how Gotbit used multiple accounts to avoid being detected for wash trades on the public blockchain. Additionally, Gotbit's clients included meme coins Saita and Robo Inu, which were subject to separate pump and dump fees.
The Department of Justice noted that Andryunin transferred millions of dollars of Gotbit's proceeds to his personal Binance account. Gotbit and others involved in widespread cryptocurrency market manipulation fraud
In October, federal prosecutors indicted three cryptocurrency companies, including Gotbit, ZM Quant, and CLS Global, and 15 individuals on charges of "widespread" market manipulation fraud.
These actions have led to four arrests and five plea agreements. Authorities also seized cryptocurrency worth over $25 million.
Andriunin was booked with charges on October 9, for his alleged involvement in the fraud. "These are the when the cryptocurrency, which is an innovative technology, is filling the old scheme -pump and dumping ground. Today's message is a fraud if you make a false declaration to deceive investors. That's it, "said American lawyer Joshua Levi. The current Department of Justice online fraud charges carry a maximum penalty of 20 years in prison, up to three years of supervised release, a fine of up to $250,000, or twice the gross profit or loss arising from the crime, restitution and forfeiture, except for the market manipulation charge, which carries a maximum penalty of five years in prison.