Crypto Market Maker Gotbit Sentenced for $23M Wash Trading Scheme

Crypto market maker Gotbit Consulting LLC and its founder, Aleksei Andriunin, were sentenced for using wash trading to manipulate crypto markets. The firm created fake trading volume to boost client tokens' visibility, earning millions in the process. The Department of Justice (DOJ) stated that Gotbit is the third crypto market maker convicted in a broader federal crackdown on
fraud.Massachusetts U.S. District Court Judge Angel Kelley ordered Gotbit Consulting LLC to forfeit $23 million in seized cryptocurrency. Andriunin was sentenced to eight months in prison and one year of supervised release. Both were charged in 2024 with market manipulation, wire fraud, and conspiracy. The charges were part of a broader crackdown announced in October, when the DOJ indicted 14 people and four companies, including Gotbit, for market manipulation and wire fraud.
As part of the plea agreement reached in March, Gotbit agreed to forfeit over $22.8 million in cryptocurrency, including approximately $9 million in Tether (USDT) and $4.2 million in USDC from one wallet, along with two additional wallets containing $5 million and $4.7 million in USDT. The court found that the scheme caused financial harm to investors who bought overvalued cryptocurrencies, but the total losses or profits could not be reliably calculated for sentencing purposes, resulting in a reduced sentence for Andriunin.
Andriunin pleaded guilty to charges of wire fraud and conspiracy to commit market manipulation. Between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies. Wash trading is a practice in which the same asset is repeatedly bought and sold to inflate trading volume without any legitimate market activity. Often, this manipulation is done using multiple accounts or by colluding with others.
Andriunin created software that executed trades between multiple controlled accounts to simulate legitimate volume. The firm marketed these tools as a way to gain listings on platforms like CoinMarketCap and larger cryptocurrency exchanges. Gotbit admitted that it engaged in manipulative trades to artificially increase the trading price and volume of tokens for clients that included Robo Inu and Saitama.
Gotbit is the third crypto market maker convicted in connection with illegal wash trading, following the founder of MyTrade in October 2024 and CLS Global FZC LLC in April 2025. The sentencing of Andriunin is expected to have a deterrent effect on other market participants, sending a clear message that market manipulation will not be tolerated. The case also underscores the challenges faced by regulators in monitoring and enforcing compliance in the rapidly evolving cryptocurrency landscape. As the sector continues to grow, it is crucial for regulatory bodies to adapt and implement robust frameworks to prevent such activities and safeguard the interests of all stakeholders.

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