Crypto Company CEO Charged with Fraud and Market Manipulation

The U.S. Department of Justice (DOJ) has brought wire fraud and market manipulation charges against Aleksei Andriunin, the founder and CEO of crypto market-making firm Gotbit.

Andriunin, along with his partners Fedor Kedrov and Qawi Jalili, faces allegations that they manipulated cryptocurrency trading volumes to secure listings on CoinMarketCap and exchanges, stretching back from 2018 until 2024.

Federal prosecutors claim Gotbit used “wash trading” to artificially inflate the activity levels of certain tokens, earning millions in fees for these services. The earnings were allegedly funneled into Andriunin’s Binance account.

Among Gotbit’s clients were meme coins like Robo Inu and Saitama, whose leadership was also implicated in a prior indictment from October 9. This broader investigation, which named multiple crypto firms, has so far led to four arrests, several plea deals, and the seizure of over $25 million in digital assets.

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Prosecutors emphasize that market manipulation tactics, such as wash trading, have been illegal in traditional finance and apply equally to cryptocurrency.

Acting U.S. Attorney Joshua Levy noted the DOJ’s ongoing commitment to prosecuting fraudulent schemes in emerging technology. Andriunin, if convicted, could face up to 20 years in prison for wire fraud, with conspiracy charges carrying additional potential sentences.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.