- GotBit founder Aleksei Andriunin has agreed to forfeit approximately $23 million in cryptocurrency as part of a plea agreement
- He has admitted guilt to charges of conspiracy to commit wire fraud and market manipulation
- The plea deal includes a recommendation for a prison sentence of up to 24 months
Aleksei Andriunin, founder of the cryptocurrency firm GotBit, has consented to forfeit around $23 million in digital assets after pleading guilty to conspiracy charges involving wire fraud and market manipulation. Andriunin was arrested in Portugal in October 2024 on a U.S. warrant, with authorities alleging that GotBit artificially inflated the trading volumes of its clients. Federal prosecutors are pressing for a lengthy prison sentence, which could theoretically reach 20 years, although it is likely to be far less.
GotBit Conducted Wash Trading
Under Andriunin’s leadership, between 2018 and 2024, GotBit operated as a “market maker” in the cryptocurrency industry, providing services designed to artificially inflate trading volumes for various cryptocurrencies, including those of U.S.-based companies. This practice, known as “wash trading,” involves creating fake transactions to give the illusion of heightened activity and demand.
In a 2019 interview, Andriunin described developing a code to facilitate such trades, aiming to get cryptocurrencies listed on prominent platforms like CoinMarketCap and larger exchanges. In late 2024, Andriunin was one of 18 indicted on charges of wire fraud and conspiracy to commit market manipulation and wire fraud. The indictment also charged Gotbit and two of its directors, Fedor Kedrov and Qawi Jalili, with similar charges.
Andriunin Admits Charges
According to the plea agreement, Andriunin has admitted to committing the crimes specified in the charges and has agreed to plead guilty to Counts One through Three of the Superseding Indictment, which include conspiracy to commit wire fraud and market manipulation, as well as wire fraud. As part of the agreement, Andriunin has agreed to assist fully in the forfeiture of $23 million in crypto assets earned from the scheme.
The plea agreement includes a recommendation by Andriunin’s defense for incarceration for up to, but no greater than, 24 months and no fine in light of forfeiture. He has also agreed to pay restitution in an amount to be determined at sentencing, which may be substantial.
