TLDR
- Aleksei Andriunin, the 26-year-old originating from Russia and founder of Gotbit, extradited to the U.S. from Portugal.
- Suspected of wire fraud and planning market manipulation, possibly facing a 25-year sentence.
- Accused of running crypto 'wash trading' schemes to fake token value and trading activity.
- Gotbit and two key figures also face accusations; the firm allegedly made tens of millions through these actions.
- Reports highlight Andriunin's transfer of millions from Gotbit to his own Binance account.
The 26-year-old Russian founder of Gotbit, Aleksei Andriunin, has been transferred to the U.S. to confront serious fraud allegations. Andriunin was brought to a federal court in Boston on February 25, 2025, following an arrest in Portugal last October.
The Department of Justice in the U.S. shared the news of his extradition on February 26. Andriunin is up against charges of wire fraud and plotting to manipulate the market, which, if combined, could land him with a 25-year prison term.
A federal grand jury in Boston has also pinpointed Gotbit as a part of the indictment. Involved are Fedor Kedrov, who oversees Market Making at Gotbit, and Qawi Jalili, responsible for sales.
From 2018 to 2024, prosecutors assert Gotbit functioned as a 'market maker,' providing manipulative market services. The firm reportedly simulated trade volumes for various cryptocurrency entities, some based in the U.S.
Wash Trading
The accusation details how Gotbit engineered 'wash trading' algorithms, simulating cryptocurrency transactional volume. The aim was to place these tokens on CoinMarketCap, a site focusing on trending digital currencies.
Listing on CoinMarketCap would potentially allow tokens access to larger platforms, increasing exposure and possibly driving up prices, ultimately benefiting their creators.
Andriunin was candid about Gotbit’s activities. In a 2019 chat with CoinDesk, he admitted his trade was 'not entirely ethical.' This was noted in the DOJ's press statement.
Court papers suggest Gotbit marketed these 'wash trading' methods to attract clients. The company reportedly disclosed using multiple accounts to disguise these trades on transparent blockchains.
The alleged fraud spans a significant scale. Prosecutors allege Gotbit conducted wash trades worth several million dollars for clients. These services allegedly netted 'tens of millions of dollars' in revenue.
Andriunin is accused of moving millions from Gotbit’s revenue into his Binance account, one of the biggest crypto-exchange platforms globally.
Facing 20 Years in Prison
If proven guilty of wire fraud, Andriunin could be looking at a 20-year prison term. There's also the potential for a fine reaching $250,000 or double the total loss or gain from the crime. Restitution and property seizure are on the cards, too.
Conspiracy charges add more penalties. Andriunin might face a 5-year sentence for planning market manipulation and wire fraud. Post-release supervision of up to three years is also a possibility.
The case saw international teamwork, with the FBI’s Legal Attaché in Madrid and Portugal’s Policia Judiciaria ENFAST helping. The Justice Department’s International Affairs Office liaised with Portuguese officials to finalize Andriunin’s arrest and extradition.
U.S. Attorney Leah B. Foley and FBI Special Agent Jodi Cohen announced the extradition. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb from the Securities and Cyber Fraud Unit are handling the prosecution.
Andriunin remains detained, awaiting further court proceedings. The date for this is yet to be confirmed. Under U.S. legal standards, all accused are considered innocent until proven otherwise.
