TLDR
- Gotbit founder Aleksei Andriunin reached a plea deal with U.S. authorities to forfeit $23 million in crypto assets
- Andriunin faced up to 20 years in prison for wire fraud and market manipulation, but may avoid prison time with the deal
- Gotbit allegedly operated a market manipulation enterprise from 2018-2024, primarily using “wash trades” to inflate token prices
- Andriunin will serve three years of supervised release during which he cannot participate in any crypto activities
- Gotbit was one of four crypto firms charged with market manipulation in the first criminal prosecution targeting such practices in the crypto industry
Aleksei Andriunin, the 26-year-old founder of crypto market-making firm Gotbit, has agreed to forfeit $23 million in cryptocurrency assets as part of a plea deal with U.S. authorities. The agreement was reached in connection with market manipulation and wire fraud charges.
The plea deal was communicated to both the court and defense counsel. If approved, Andriunin could avoid prison time entirely despite facing charges that carried a maximum sentence of 20 years.
The forfeited assets include about $14 million in Tether (USDT) stored in two wallet addresses. The remaining $9 million is in USD Coin (USDC) kept in two other crypto wallets.
Court documents state that these wallets are “solely controlled” by Andriunin on Gotbit’s behalf. The assets are listed as property of Gotbit Consulting LLC.
Andriunin was extradited to the U.S. in late February 2025. This happened after his arrest in Portugal four months earlier.
Federal prosecutors outlined the maximum penalties for the charges. These included fines of $500,000 or twice the amount gained or lost from the offenses.
The plea agreement would require no additional fines beyond the asset forfeiture. It would also include three years of supervised release with strict conditions.
Prohibited from participating in cryptocurrency activities
During this supervised release period, Andriunin will be prohibited from participating in any cryptocurrency activities. This restriction is part of the terms outlined in court documents.
According to prosecutors, Gotbit operated as a market manipulation enterprise between 2018 and 2024. The firm allegedly offered token price-inflating services to various crypto projects, including some based in the United States.
The main method Gotbit used was “wash trading.” This practice creates fake trading activity to make a token appear more popular than it really is.
In a 2019 interview later referenced in Justice Department filings, Andriunin admitted that Gotbit’s business model was “not entirely ethical.” This statement was included in an unsealed indictment cited by the U.S. Department of Justice.
The Securities and Exchange Commission (SEC) filed a separate complaint against Gotbit and its marketing director Fedor Kedrov. The SEC claimed the firm kept detailed records comparing artificially “created volume” against natural “market volume” in crypto markets.
Market manipulation
Court documents state that Andriunin’s activities with Gotbit caused financial harm to market participants. These people bought crypto “at fraudulently inflated prices” due to the manipulation.
Gotbit was charged alongside three other crypto firms in October 2024. These firms—ZM Quant, CLS Global, and MyTrade—were part of the first criminal prosecution targeting market manipulation in the crypto industry.
The Department of Justice seized over $25 million in crypto related to the case. Law enforcement even created a fake digital token to catch alleged criminals in the act of manipulation.
Following the charges, many meme coin projects that had partnered with Gotbit tried to distance themselves from the firm. Some projects issued statements disavowing the company they had previously depended on for liquidity services.
The court retains final say over the sentencing terms. While the plea agreement suggests no prison time, the judge will make the final decision on whether to accept all elements of the deal.
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