Key Takeaways:
- Gotbit Founder Extradited: Aleksei Andriunin was extradited from Portugal to the U.S. to face charges of market manipulation and wire fraud conspiracy.
- FBI Sting Operation: Authorities allege Gotbit used wash trading to inflate trading volumes, exposed in the FBI’s “trap token” sting.
- Millions in Fraudulent Proceeds: Prosecutors claim Gotbit made “tens of millions” through manipulation, with Andriunin allegedly moving funds to his Binance account.
Aleksei Andriunin, the founder of Gotbit, a crypto hedge fund and market-making firm, has been extradited from Portugal to the U.S. on charges of market manipulation and wire fraud conspiracy.
Arrested on October 8 and extradited on October 25, Andriunin appeared in a Boston federal court, where he was ordered to remain in custody.
Founder of Cryptocurrency Financial Services Firm “Gotbit” Extradited to the United States to Face Charges of Market Manipulation and Fraud Conspiracy @DMAnews1 https://t.co/3hB5jAg8xn
— U.S. Department of Justice – International (@USDOJ_Intl) February 26, 2025
Alongside Gotbit directors Fedor Kedrov and Qawi Jalili, Andriunin was indicted on October 31 for allegedly engaging in fraudulent market-making.
Authorities claim Gotbit used software to conduct wash trading—artificially inflating trading volumes—to help clients secure token listings on CoinMarketCap and facilitate exchange trading.
The FBI’s NexFundAI “trap token” sting operation, conducted in May 2023, exposed their alleged scheme.
Between 2018 and 2024, Gotbit reportedly earned tens of millions of dollars from these practices, with Andriunin allegedly transferring some proceeds to his Binance account.
‘Gotbit’ founder and Russian national extradited to U.S. to face fraud, market manipulation charges https://t.co/ZuIAMF1pyy
— Boston 25 News (@boston25) February 27, 2025
If convicted, he faces up to 20 years in prison for wire fraud, a $250,000 fine, and potential restitution.
The conspiracy charge carries an additional five-year sentence.
The SEC also filed a fraud lawsuit against Gotbit and Kedrov in October 2023, further intensifying the legal scrutiny surrounding the firm and its executives.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
Check Efe out on:
