Gotbit Founder Aleksei Andriunin Indicted by US Justice Department for Crypto Market Manipulation

Aleksei Andriunin, founder of crypto market maker Gotbit, was indicted by the U.S. Justice Department on Thursday. The 26-year-old faces charges of wire fraud and conspiracy to manipulate cryptocurrency markets.

Aleksei Andriunin, the founder of crypto market maker Gotbit, has been indicted by the U.S. Justice Department on Thursday.

The 26-year-old faces charges of wire fraud and conspiracy to manipulate cryptocurrency markets. Federal authorities allege that Gotbit, under Andriunin’s leadership from 2018 to 2024, engaged in schemes to inflate trading volumes for several cryptocurrency companies, including some in the United States.

The Justice Department’s recent superseding indictment also names Gotbit directors Fedor Kedrov and Qawi Jalili. They were previously charged in October as part of a wider investigation. This probe has implicated multiple crypto firms, resulting in four arrests, guilty pleas from five individuals, and the seizure of $25 million worth of crypto assets.

If found guilty, Andriunin could face a maximum sentence of 20 years for wire fraud, plus up to five years for conspiracy charges.

The case marks an ongoing crackdown by U.S. authorities on financial misconduct in the crypto industry. Just yesterday, the U.S. Department of Justice announced a guilty plea from Liu Zhou, the founder of crypto market-making firm MyTrade, for charges related to market manipulation.

Zhou, 39, admitted to engaging in “wash trading” — the practice of artificially inflating asset prices by executing simultaneous buy and sell orders to create the illusion of high trading volume. His sentencing is set for early next year.

According to the Justice Department, Zhou's operation, known as MyTrade MM, misled clients by executing self-trades and running “pump and dump” schemes. Specifically, Zhou and his team engaged in a practice known as “wash trading,” rapidly buying and selling the same tokens to artificially inflate their prices. They aimed to sell these manipulated tokens at a higher price to unsuspecting buyers.

“We are going to locate other buyers from the community and sell them at a higher price,” Zhou said of his operation, as reported by the Justice Department.

This case is part of a broader DOJ crackdown on crypto market manipulation, with other firms like CLS Global, and ZM Quant also facing accusations of inflating token volumes. These firms allegedly engaged in similar practices, making tokens appear more active and valuable than they were, often selling them at inflated prices to outside investors.

One of the accused firms, CLS Global, responded by reaching out to U.S. authorities and claimed that it plans to improve its processes. Filipp Veselov, CEO of CLS Global, stated, “We recognize that there may be areas where we can improve our processes, and we are open to constructive dialogue with regulatory authorities.” The company added that it actively works to restrict engagement with U.S. clients.

The Securities and Exchange Commission (SEC) also filed a separate civil lawsuit against Zhou and his firm, alleging that they engaged in wash trading on a massive scale on Binance.US. The SEC accused the firm of executing trades that lacked economic substance and were designed to artificially inflate the trading volume of crypto asset securities on Binance.US.