By Mark Hunter
1 day agoMon Nov 04 2024 07:28:18
Reading Time: 2 minutes
- The founder of Gotbit, Aleksei Andriunin, has been indicted for wire fraud and conspiracy related to market manipulation
- Gotbit is accused of inflating cryptocurrency trading volumes through wash trading to benefit client companies
- The scheme reportedly involved millions in manipulated trades and transferred profits into Andriunin’s personal accounts
Aleksei Andriunin, founder of the cryptocurrency market-making firm Gotbit, has been indicted for conspiring to commit market manipulation and wire fraud. U.S. authorities allege that Gotbit’s practices involved fabricating trading volumes to promote client cryptocurrencies, leading to substantial illicit gains. The charges come at a time when authorities are cracking down on market makers in the crypto sector.
Andriunin Developed Wash Trading System
Aleksei Andriunin, the 26-year-old Russian CEO of Gotbit, has faced an indictment unveiled by the U.S. Attorney’s Office for Massachusetts. Prosecutors allege that Andriunin led a conspiracy stretching from 2018 to 2024, designed to boost cryptocurrencies’ perceived market activity artificially. In an indictment, Gotbit is said to have developed a system enabling wash trading — simulated trades that falsely inflated transaction volumes.
“Andriunin’s scheme misled markets, using sophisticated algorithms and disguised identities to execute fake trades,” stated U.S. Attorney Joshua S. Levy. The fraudulent operations aimed to secure listings on major platforms like CoinMarketCap, facilitating broader access to exchanges.
Gotbit Team Worked to Attract Clients
The court documents revealed that Gotbit’s team, including sales director Qawi Jalili and market-making director Fedor Kedrov, worked alongside Andriunin to attract clients and explain their manipulative techniques. Records indicated spreadsheets meticulously tracking fabricated and organic trading volumes. “They used multiple accounts to avoid detection,” noted investigators.
The indictment states that Andriunin funneled millions in proceeds to his personal Binance account. If convicted, he faces up to 20 years in prison for wire fraud, alongside financial penalties. The allegation comes two weeks after U.S. authorities charged 18 people and companies in an international cryptocurrency fraud case concerning market making.
