Gotbit Founder Sentenced Eight Months Prison For Market Manipulation

Aleksei Andriunin, the founder and CEO of Gotbit Consulting LLC, has been sentenced to eight months in prison followed by one year of supervised release. The sentencing came after Andriunin pleaded guilty to charges of wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin, a dual citizen of Russia and Portugal, was arrested in Portugal and extradited to the United States.

Gotbit Consulting LLC, the firm Andriunin founded, was also ordered to forfeit approximately $23 million in seized cryptocurrency as part of its criminal resolution. The court further sentenced Gotbit to a term of probation for five years, during which the firm is required to cease operations. The indictment against Gotbit and Andriunin also named two of Gotbit’s directors, Fedor Kedrov and Qawi Jalili, who face similar charges.

Between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies. Andriunin developed a code to "wash trade" cryptocurrencies, artificially inflating trading volume to get cryptocurrencies listed on platforms and trading on larger cryptocurrency exchanges. Gotbit's employees marketed these tactics to clients, explaining how multiple accounts were used to avoid detection on the public blockchain. The firm made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in payments.

The manipulation efforts by Gotbit included artificially increasing the trading price and volume of tokens for clients such as Robo Inu and Saitama. Leaders of these cryptocurrency companies were charged in separate cases. Gotbit is the third market maker to resolve criminal charges relating to wash trading in the cryptocurrency industry. In October 2024, the founder of MyTrade pleaded guilty in connection with providing an unlawful wash trading service identified through an undercover law enforcement operation. In April 2025, CLS Global FZC LLC was sentenced in connection with offering illegal "volume support" services uncovered by the same operation.

The Securities & Exchange Commission brought a related civil enforcement action against Gotbit, alleging violations of the securities laws. The case was prosecuted by Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Criminal Division, with Assistant U.S. Attorney Carol Head, Chief of the Asset Recovery Unit, handling the forfeiture matter. The announcement was made by United States Attorney Leah B. Foley and Kimberly Milka, Acting Special Agent in Charge of the Federal Bureau of Investigations.

The sentencing of Aleksei Andriunin marks a significant move in the crackdown on market manipulation, broadening regulatory scrutiny in the cryptocurrency industry. The repercussions include significant financial shifts within the crypto market landscape, with Gotbit's mandatory service suspension. Additionally, the lack of public reaction from major exchanges stands noteworthy. As the U.S. Department of Justice continues to pursue legal action, the broader implications signal increased regulatory vigilance. The situation serves as a stark reminder of global efforts to instill transparency within the digital currency sector. Historical trends suggest that such regulatory interventions could spur technological advancements in compliance and security measures.