Gotbit founder extradited for market manipulation

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Imagine running a cryptocurrency firm that makes millions by faking trades to boost token prices.

Sounds like a recipe for disaster, right? That’s exactly what Aleksei Andriunin, the 26-year-old founder of Gotbit, is accused of doing.

He’s been extradited from Portugal to face charges in the U.S. for wire fraud and conspiracy to manipulate markets.

Wash-trading-as-a-service

Andriunin was arrested in October and indicted by a Boston grand jury on October 31, along with two of his directors, Fedor Kedrov and Qawi Jalili.

The U.S. authorities claim that Gotbit engaged in wash trading, a form of sham trading that artificially inflates trading volumes.

This allowed their clients to get listed on major platforms like CoinMarketCap, as they can report big trading volumes. Fake volumes, of course.

It’s not confessing, it’s bragging

In a 2019 interview, Andriunin openly discussed developing a code to wash trade cryptocurrencies, which helped clients secure listings on bigger exchanges.

Prosecutors say Gotbit made trades worth millions and earned tens of millions in profits from these services. Andriunin allegedly transferred some of these proceeds into his personal Binance account.

If convicted, Andriunin could face up to 20 years in prison for wire fraud, plus additional time for conspiracy charges. He’s also looking at big fines and asset forfeiture too.

This case is part of a bigger crackdown on market manipulation in the crypto market, showing that authorities are serious about keeping the industry clean.

No land for shady practices

The extradition and charges against Andriunin highlight the ongoing efforts to regulate and protect the cryptocurrency market and investors.

It’s a reminder that while crypto offers a lot of freedom, it’s not a lawless frontier, so as the industry grows, so does the scrutiny.

Andriunin’s case is a good example of what happens when you try to game the system.

Have you read it yet? The SEC’s crypto retreat means is the war on crypto really over?

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

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