Gotbit Founder Agrees to Forfeit $23 Million in Crypto Assets in Plea Deal
Gotbit founder Aleksei Andriunin has reached a plea agreement with U.S. authorities to forfeit $23 million in crypto assets in connection with market manipulation charges.
Financial Harm Caused by Gotbit’s Operations
Andriunin’s involvement with Gotbit’s operations caused financial “harm to dispersed market participants” who bought crypto “at fraudulently inflated prices,” court documents cited by Law360 show.
Extradition and Plea Agreement Details
The 26-year-old founder of market-making firm Gotbit was extradited to the U.S. in late February after being arrested in Portugal four months earlier. The plea agreement could result in no prison time and no additional fines beyond the forfeiture. However, the court retains final discretion over sentencing terms.
Charges and Maximum Penalties
Andriunin faced a maximum 20-year prison sentence on charges of wire fraud and conspiracy to commit market manipulation. Gotbit, alongside three other crypto firms, was charged with crypto market manipulation in October last year. Federal prosecutors have outlined maximum penalties for the market manipulation and wire fraud charges.
Assets Subject to Civil Forfeiture
The assets subject to civil forfeiture totaling $23 million include amounts kept in stablecoins issued by Tether and Circle across four wallets “solely controlled” by Andriunin.
Gotbit’s Market Manipulation Practices
According to federal prosecutors, Gotbit operated as a sophisticated market manipulation enterprise between 2018 and 2024, offering token price-inflating services to various crypto projects, including U.S.-based companies. Gotbit primarily engaged in extensive “wash trades” that deceptively created the appearance of increased trading activity.
Regulatory Complaint and Admission of Guilt
In a separate complaint filed by the SEC against Gotbit and Fedor Kedrov, cited as the firm’s marketing director, the regulator claimed that the crypto firm maintained detailed records comparing artificially “created volume” against natural “market volume” in crypto markets. In a 2019 interview later referenced in Justice Department filings, Andriunin admitted that Gotbit’s business model was “not entirely ethical.”
Supervised Release and Restrictions
Andriunin will serve three years of supervised release with strict conditions preventing his participation in any crypto activities during that period, court documents show.
Edited by Sebastian Sinclair