Gotbit Founder Extradited to U.S. Over Alleged Crypto Market Manipulation Scheme

Aleksei Andriunin, the founder of the cryptocurrency firm Gotbit, was recently transferred to the U.S. from Portugal after being arrested in October 2024.

He faces charges related to wire fraud and market manipulation, specifically through alleged “wash trading,” a practice where fake trades inflate the value and volume of digital assets. Andriunin’s extradition follows a growing global crackdown on financial misconduct in the crypto industry, as seen with the case of Terraform Labs’ Do Kwon, who was also sent to the U.S. for fraud charges.

According to U.S. authorities, Gotbit operated as a market maker but took these activities a step further by artificially boosting the presence of certain cryptocurrencies.

This manipulation helped digital assets secure listings on major platforms, resulting in millions of dollars in illicit revenue. Andriunin is accused of funneling proceeds from these fraudulent trades into his Binance account. If convicted, he faces significant prison time.

This case is part of a broader effort by law enforcement agencies, including the FBI, to combat crypto fraud. Operation Token Mirrors, which has led to several arrests in the industry, has been central to exposing market manipulation schemes. Experts point out that this case is one of the most significant investigations into crypto fraud to date. Andriunin’s two co-directors, Fedor Kedrov and Qawi Jalili, remain at large.

As the U.S. takes further action against cryptocurrency-related crimes, Andriunin’s case is a stark reminder of the risks within the market, with authorities aiming to deter future fraudulent schemes that harm investors and distort market dynamics.