Crypto Founder Extradited: Mastermind Behind $25M Market Manipulation Scheme

Aleksei Andriunin, the founder of Gotbit, has been extradited to the United States to face serious charges, including wire fraud and market manipulation. The allegations stem from a multinational investigation into cryptocurrency market manipulation and fraud, led by the Federal Bureau of Investigation (FBI) under the name "Operation Token Mirrors."

From 2018 to 2024, Andriunin's firm allegedly engaged in wash trading to create false market volume for multiple crypto companies, deceiving investors. The FBI uncovered this fraud, resulting in the seizure of over $25 million in crypto assets. The extradition of Gotbit's founder reinforces global efforts to combat cryptocurrency fraud, with significant implications for regulatory practices and investor protection.

The US Attorney's Office for the District of Massachusetts confirmed Andriunin's extradition on February 26, marking a significant development in the multinational crackdown on cryptocurrency fraud. Court filings reveal that Andriunin openly acknowledged in a 2019 interview that he had engineered a code to execute "wash trades," a practice where a trader buys and sells the same asset or security in a short period, creating a false appearance of high trading volume and liquidity.

Prosecutors allege that Andriunin kept records of Gotbit's market manipulation, including spreadsheets that compared "Created Volume" from wash trades with naturally occurring "Market Volume." This deceptive practice was a cornerstone of Gotbit's strategy to attract clients, who paid steep fees for what they believed was legitimate market support. Further allegations suggest that Andriunin redirected millions of dollars in illicit proceeds from Gotbit to his personal account on the crypto exchange Binance.

The FBI-led investigation resulted in the seizure of more than $25 million in cryptocurrency assets and the shutdown of several trading bots associated with around 60 tokens used to manipulate trading volumes and deceive investors. Legal actions commenced with an indictment unsealed on October 9, 2024, charging 18 individuals and entities, including Gotbit and its two directors, Fedor Kedrov and Qawi Jalili. A superseding indictment on October 31, 2024, provided further details about Andriunin's role, accusing him of masterminding the conspiracy.

If found guilty