Aleksei Andriunin, the founder of crypto market maker Gotbit, has reached a plea agreement with U.S. authorities

The agreement comes after Andriunin pleaded guilty to one count of market manipulation and two counts of wire fraud.

Aleksei Andriunin, the founder of crypto market maker Gotbit, has reached a plea agreement with U.S. authorities that would see him avoid prison time in exchange for forfeiting $23 million in cryptocurrency assets.

The agreement comes after Andriunin pleaded guilty to one count of market manipulation and two counts of wire fraud.

If the plea deal is approved, Andriunin would only face up to 24 months of incarceration, followed by 36 months of supervised release, according to court documents. This is much less than the maximum 20-year prison sentence he originally faced for his charges.

The 26-year-old founder was extradited to the United States in late February after being arrested in Portugal four months earlier.

Andriunin was accused of taking part in a long-running “wash trading” scheme between 2018 and 2024 while serving as the CEO of Gotbit. He is said to have used this method to help several crypto projects by attempting to boost trading volumes.

What Is Wash Trading?

Wash trading involves making fake trades that are designed to create the false impression of market activity.

In this case, Andriunin is said to have used this method to help several crypto projects by attempting to boost trading volumes.

Forfeit $23 Million

As part of the plea agreement, Andriunin has agreed to forfeit around $23 million worth of stablecoins from four separate wallets.

This includes nearly $14 million in Tether (USDT) that is stored in two different crypto wallet addresses. The agreement also includes about $9 million in USDC that is being held in two other crypto wallets.

All of these assets are listed as the property of "Gotbit Consulting LLC." However, the wallets are said to be "solely controlled" by Andriunin on behalf of Gotbit.

Federal prosecutors had estimated that the charges could carry a maximum $500,000 fine or twice the amount gained or lost from the offenses. But if the plea deal is approved, Andriunin would not need to pay any extra fines beyond the $23 million asset forfeiture.

During the three years of supervised release, Andriunin will not be allowed to take part in any crypto activities. This restriction is among the conditions set forth in the plea agreement.

The U.S. Attorney for the District of Massachusetts said in the court document that "Defendant agrees to assist fully in the forfeiture of the above assets. Defendant agrees to promptly take all steps necessary to pass clear title to the above assets to the United States."

Gotbit is one of four companies that were charged by U.S. prosecutors in what was called the first criminal prosecution targeting market manipulation in the crypto industry. The other three companies are ZM Quant, CLS Global, and MyTrade.

Market Manipulator

According to federal prosecutors, Gotbit operated as a sophisticated market manipulation enterprise. The company offered token price-inflating services to various crypto projects, including some that were based in the United States.

The Securities and Exchange Commission (SEC) filed a separate complaint against Gotbit and its marketing director, Fedor Kedrov. In this complaint, the regulator claimed that the crypto firm kept detailed records comparing "created volume" against natural "market volume" in crypto markets.

According to court documents, Gotbit's activities caused financial harm to market participants who bought crypto "at fraudulently inflated prices." The firm's business practices also raised several red flags in the industry.

In fact, in a 2019 interview that was later referenced in Justice Department filings, Andriunin himself admitted that Gotbit's business model was "not entirely ethical." This admission has now come back to haunt him in the legal proceedings.

A letter detailing the plea agreement has been communicated to both the court and defense counsel. It outlines provisions allowing either party to withdraw if the court rejects any element of the deal.

While the agreement suggests no prison time, the court still has final say over the sentencing terms. This means the judge could potentially adjust the terms of the agreement.

After news of the charges broke last year, many meme coin projects that had partnered with Gotbit quickly tried to distance themselves from the company. Some token teams that had depended on Gotbit for liquidity issued statements disavowing their relationship with the firm.