Crypto Market Maker Gotbit Founder Sentenced to 8 Months for Wash Trading Scheme

Aleksei Andriunin, the founder and CEO of crypto market maker Gotbit, has been sentenced to eight months in prison for his involvement in a multi-million-dollar wash trading scheme. This scheme was designed to inflate trading volumes for various cryptocurrencies, thereby misleading investors and market participants.

The sentencing was delivered by U.S. District Court Judge Angel Kelley in Boston. This followed Andriunin’s guilty plea in March 2025 to charges of wire fraud and conspiracy to commit market manipulation. The 26-year-old, who holds dual citizenship in Russia and Portugal, was initially arrested in Portugal in October 2024 and subsequently extradited to the U.S. in February 2025.

As part of a plea agreement, Andriunin agreed to forfeit $23 million in stablecoins held in crypto wallets linked to Gotbit. This forfeiture is a significant component of the legal resolution, aimed at recovering funds that were illicitly obtained through the wash trading scheme.

Gotbit Consulting LLC, the firm founded by Andriunin, was also sentenced to five years’ probation and is required to cease operations. The company admitted to offering wash trading services between 2018 and 2024, manipulating trading volumes to make client tokens appear more active. This manipulation was intended to help these tokens gain listings on exchanges and CoinMarketCap, thereby enhancing their perceived legitimacy and value.

Prosecutors revealed that Gotbit used multiple accounts to avoid detection on the blockchain and received tens of millions of dollars in client payments for these services. Tokens involved in the scheme included Robo Inu and Saitama. Company directors Fedor Kedrov and Qawi Jalili were also indicted in connection with the illegal activities.

Gotbit is the third crypto market maker to be charged in relation to illegal trading practices, following actions against MyTrade and CLS Global. This highlights a growing trend of regulatory scrutiny and enforcement against market manipulation in the cryptocurrency industry.

The Securities and Exchange Commission has filed a separate civil enforcement action against Gotbit for securities law violations. This dual approach by both criminal and civil authorities underscores the seriousness of the offenses and the commitment to holding those responsible accountable.

As part of his sentence, Andriunin will also serve one year of supervised release and is barred from engaging in any crypto-related activity during that period. This restriction is intended to prevent further illegal activities and to ensure compliance with the terms of his sentence.