Crypto Market Manipulation Charges Against Gotbit Founder

Indictment of Aleksei Andriunin

Aleksei Andriunin, the founder of Gotbit, a cryptocurrency market-making firm, has been indicted by the U.S. Justice Department. The charges include wire fraud and conspiracy to commit market manipulation. These allegations stem from actions taken between 2018 and 2024, during Andriunin's tenure as CEO, where Gotbit reportedly manipulated cryptocurrency markets on behalf of various client companies.

Market Manipulation Activities

Gotbit allegedly engaged in creating artificial trading volumes for multiple cryptocurrency companies, including some based in the United States. This activity aimed to mislead investors about the true market activity of these cryptocurrencies, potentially influencing market perceptions and valuations.

Additional Charges and Penalties

Alongside Andriunin, Gotbit directors Fedor Kedrov and Qawi Jalili have also been charged. If found guilty of wire fraud, Andriunin faces up to 20 years in prison, while the conspiracy charges carry a maximum sentence of five years.

Broader Legal Actions

The indictment is part of a broader crackdown by federal prosecutors announced earlier in October. This initiative targeted several crypto firms, including Gotbit, ZM Quant, and CLS Global, resulting in multiple arrests and guilty pleas. The operation also led to the seizure of over $25 million in cryptocurrency assets.

Implications for the Crypto Industry

These legal actions highlight increased regulatory scrutiny on the cryptocurrency industry, particularly regarding market integrity and investor protection. The indictments serve as a warning to other market participants about the legal repercussions of manipulating financial markets.