Gotbit Founder Faces U.S. Charges for Alleged Wash Trading Services

On February 26, Aleksei Andriunin arrived in Boston, after which he appeared in a U.S. federal court as the CEO and founder of Gotbit. 

The court accuses Andriunin of committing wire fraud and conspiracy to wash trading operations. The prosecution revealed that Gotbit performed services for crypto issuers who wanted to artificially boost trading volume to trick their investors.

Gotbit accused of years of market manipulation

Authorities claim Gotbit facilitated wash trading from 2018 to 2024, generating tens of millions of dollars. The company allegedly executed sham trades to create artificial market demand. Andriunin, a 26-year-old Russian national, is accused of transferring millions from company accounts to his personal Binance wallet. He was arrested in Portugal on October 8 and extradited to the United States. He remains in custody as he awaits trial.

Sales director Qawi Jalili, market-making director Fedor Kedrov, and Gotbit also face charges. Reports indicate that Jalili and Kedrov are believed to be in Russia. If convicted, Andriunin could face up to 20 years in prison for wire fraud and another five years for conspiracy, along with fines reaching $250,000 or twice the financial gain or loss resulting from the crimes.

FBI operation uncovers multiple cases of wash trading

Operation Token Mirrors, launched by the FBI in October, was a sting operation to study market manipulation within the cryptocurrency sector. To conduct the investigation, the agency produced a genuine token named NexFundAI (NEXF) while seeking involvement from different companies for its promotion. Gotbit provided services related to crypto tokens discovered by investigators even though it did not specifically market NEXF.

Authorities filed charges against 18 individuals and eight companies. The FBI deactivated trading for 60 cryptocurrencies and seized $25 million of digital assets. NEXF remains actively traded.

Crypto investigator ZachXBT had previously warned against Gotbit in 2023. He highlighted the company’s questionable activities in a post on X, cautioning investors about its operations.

Crypto Community Distances Itself from Gotbit

The FBI operation led several projects to separate from their professional ties with Gotbit. The game developers later contradicted previous announcements of Gotbit as an advisor to the Hamster Kombat game project on Telegram. After adopting Gotbit as its partner, NEIRO disassociated itself from the firm.

Gotbit claims it has over 180 employees and manages $1.3 billion in assets for institutional clients. Its website lists Binance, Bybit, Crypto.com, HashKey, KuCoin, and OKX as part of its network.

The post Gotbit Founder Faces U.S. Charges for Alleged Wash Trading Services first appeared on Coinfea.