Gotbit founder pleads guilty to wash trading activities and is set to serve 2 years in jail for the offense.
By Godfrey Benjamin
Updated
3 mins read
Aleksei Andriunin, founder of crypto firm Gotbit, has pleaded guilty to crypto fraud charges. US prosecutors had accused the 26-year-old of manipulating crypto token prices to pay clients.
According to an update from Silicon, the charges against Andriunin carry a maximum combined sentence of 25 years. However, with a recent plea deal with US prosecutors, he is likely to bag himself up to two years in prison.
US authorities disclosed on Friday that the Gotbit founder pleaded guilty to one conspiracy charge to commit market manipulation and two counts of wire fraud. His confession is part of a deal with US authorities to receive no more than two years in jail. Andriunin has also agreed to pay approximately $23 million (£17.8m) in crypto stablecoins in fines.
In their indictment last October, US government prosecutors accused Gotbit of offering market manipulation services to paying clients. They claim the crypto firm used wash-trading techniques to boost the volume and price of customers’ tokens artificially. Prosecutors added that the firm aimed to list and trade the coins on larger crypto exchanges.
The indictment spotlighted a 2019 interview published online in which Andriunin shared details about the scheme. The then-20-year-old student at Moscow State University detailed how he used bot trading to create enough artificial trade volume for a project to get listed on CoinMarketCap.
Officials arrested the 26-year-old Russian national on October 8 at his residence in Portugal. He was later extradited to the United States on February 25, 2025, following legal proceedings. He has now pleaded guilty to charges related to his crypto operations. His sentencing is scheduled for 16 June.
Meanwhile, Saitama and Robot Inu, two crypto companies that allegedly paid Gotbit for its services, also face charges. Qawi Jalili and Fedor Kedrov, both employees at Gotbit, were also indicted. They were accused of explaining the wash trading scheme to potential clients and advising them on evading detection.
Andriunin’s potential two-year sentencing follows several other fraud investigations in the crypto space over the past few years. In August, 53-year-old Shan Hanes used his position as the CEO of Heartland Tri-State Bank (HTSB) to embezzle some funds. This eventually led to the bank’s failure and a complete loss of equity for investors.
Court documents showed that Hanes engaged in a fraudulent scheme called “pig butchering”. This involved embezzling funds through wire transfers from Heartland’s accounts to unidentified crypto wallets under his control.
Haru Invest CEO Hyungsoo Lee and two other top executives were arrested in another development. Prosecutors charged Haru and his executives with misappropriating customer funds from March 2020 to June 2023.
Following his arrest, an angry investor brutally attacked Lee during a court trial in South Korea in August.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
