Aleksei Andriunin, the founder of Gotbit, a cryptocurrency market maker, has recently reached a plea deal with US federal prosecutors in a case involving crypto market manipulation and wire fraud. As part of the agreement, Andriunin has agreed to forfeit approximately $23 million in crypto assets.
Initially facing the possibility of a maximum sentence of 20 years in prison for wire fraud charges and up to five years for conspiracy to commit market manipulation, Andriunin may now avoid any prison time altogether. Prosecutors have recommended probationary terms of up to five years per count, highlighting Andriunin’s decision to plead guilty to one conspiracy charge and two wire fraud charges.
Andriunin was reportedly involved in a conspiracy to manipulate crypto markets on behalf of client companies. Extradited to the US after being arrested in Portugal in October 2024, Andriunin’s actions allegedly caused harm to market participants who purchased cryptos at fraudulently inflated prices.
The plea agreement outlined Andriunin’s involvement in the Gotbit scheme, noting that the losses from the offense cannot be accurately estimated based on available information. The US Attorney reserves the right to argue for an upward departure in sentencing if deemed necessary.
Andriunin, along with Gotbit’s directors Fedor Kedrov and Qawi Jalili, offered market manipulation services to create artificial trading volume for various crypto firms between 2018 and 2024. The trio also faces crypto “wash trading” charges, with allegations of using multiple accounts to avoid detection for wash trades on the public blockchain.
Gotbit’s clients included meme coins such as Saitama and Robo Inu, which have been separately charged in a pump-and-dump scheme. Following Andriunin’s arrest in Portugal, he appeared before a federal court in Boston and was ordered to remain in custody.
In the $23 million forfeiture agreement, prosecutors have stated that Andriunin will not face additional fines related to the charges. Under applicable laws, fines for each count could have gone up to $250,000. The plea agreement is subject to court approval, with the option for the US Attorney to void the agreement if necessary.
Andriunin’s lawyer, Roger Burlingame of Dechert LLP law firm, has been informed of the terms of the plea deal. The resolution of this case marks a significant development in the ongoing legal proceedings against the Russian founder of Gotbit in the crypto market manipulation case.