Russian National Faces 25-Year Prison Sentence for Market Manipulation Scheme. Aleksei Andriunin, the 26-year-old founder of crypto firm Gotbit, arrived in Boston on February 25, 2025, following extradition from Portugal.
U.S. authorities charged him with wire fraud and conspiracy to manipulate cryptocurrency markets. Federal prosecutors allege Andriunin orchestrated a six-year scheme involving “wash trading” to inflate token values for clients. If convicted, he faces up to 25 years in prison.
From Portugal Arrest to U.S. Courtroom: A Timeline
Portuguese authorities arrested Andriunin on October 8, 2024, after a U.S. indictment linked him to fraudulent activities. Subsequently, a Boston grand jury formally charged him and two Gotbit directors. Following months of legal battles, Portugal approved his extradition. Andriunin appeared in federal court on Tuesday, where a judge ordered detention pending further hearings. His legal team has yet to comment publicly.
Inside Gotbit’s “Wash Trading” Empire
Between 2018 and 2024, Gotbit allegedly generated fake trading volumes to deceive investors and exchanges. Prosecutors claim the firm used coded algorithms to execute millions in “wash trades,” creating artificial demand for client tokens. Meanwhile, the scheme reportedly secured listings on platforms like CoinMarketCap and major exchanges. Court documents reveal Gotbit earned “tens of millions” in illicit proceeds, with Andriunin funnelling funds into his personal Binance account.
A 2019 Admission Haunts Andriunin’s Defense
The Department of Justice cited a 2019 CoinDesk interview in which Andriunin admitted Gotbit’s practices were “not entirely ethical.” At the time, he was a Moscow State University student overseeing the firm’s rapid growth. Prosecutors now argue this statement underscores his awareness of the scheme’s illegality. Furthermore, internal communications allegedly show Gotbit employees coaching clients on evading blockchain detection.
Co-Conspirators
Alongside Andriunin, Gotbit directors Fedor Kedrov and Qawi Jalili face conspiracy charges. Authorities accuse Kedrov of leading market-making operations and Jalili of sales strategies promoting wash trading. Neither has been extradited yet. International agencies, including Portugal’s Policia Judiciaria and the FBI’s Madrid division, assisted in the probe. The Justice Department emphasised collaboration through the European Network of Fugitive Active Search Team (ENFAST).
Broader Crackdown on Crypto Fraud Intensifies
This case coincides with the FBI’s “Operation Token Mirrors,” which exposed manipulation tactics using a fabricated token. Federal officials warn of escalating scrutiny on market abuses.
“Cryptocurrency scams undermine trust in financial systems,” stated U.S. Attorney Leah B. Foley during a press briefing. Meanwhile, the SEC is drafting stricter guidelines for crypto exchanges to prevent similar schemes.
Legal Reckoning and Industry Implications
Andriunin’s extradition signals a pivotal moment for crypto regulation. Legal experts predict heightened accountability for market makers globally. “The DOJ is setting a precedent,” said cybersecurity attorney Mara Tanick. “Firms aiding manipulation will face consequences.” Sentencing could include fines up to $500,000 and restitution payments. For now, Andriunin awaits trial as prosecutors compile transaction records and client testimony.
Written By Fazal Ul Vahab C H
