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Gotbit Founder Charged with Wire Fraud and Market Manipulation

The DOJ just indicted the founder of Gotbit for fraudulently earning 'tens of millions.'
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Nov 1, 2024 • 1 min read

The U.S. Department of Justice (DOJ) has indicted Aleksei Andriunin, founder of crypto market-making firm Gotbit, for wire fraud and conspiracy to commit market manipulation.

What's the scoop?

  • Charges Explained: Andriunin faces up to 20 years in prison if convicted of wire fraud, alongside additional charges for market manipulation and conspiracy. Co-founders Fedor Kedrov and Qawi Jalili were also implicated.
  • Alleged Manipulation: Prosecutors claim that Gotbit artificially inflated trading volumes of various cryptocurrencies from 2018 to 2024 through wash trading tactics to secure listings on CoinMarketCap and exchanges.
  • High-Profit Scheme: The DOJ alleges that Andriunin made “tens of millions” by providing wash-trading services, pocketing the proceeds in a personal Binance account.
  • Wider Investigation: The DOJ has recently cracked down on market manipulation schemes, arresting multiple individuals and seizing over $25 million in crypto. This follows broader charges against memecoins like Robo Inu and Saitama, which allegedly hired Gotbit’s services.

Bankless Take:

The Gotbit case signals a stark warning to crypto market makers: regulators are treating crypto market manipulation with the same rigor as traditional financial crimes. This DOJ-led crackdown, particularly on “pump and dump” and wash trading schemes, could accelerate industry demands for more transparency and accountability in crypto.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

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