Aleksei Andriunin, the 26-year-old founder of cryptocurrency market-making firm Gotbit, has been extradited from Portugal to the United States to face charges of wire fraud and conspiracy to commit market manipulation, the U.S. Department of Justice (DOJ) announced.
Andriunin appeared in a Boston federal court on February 26, a day after his extradition, where he pleaded not guilty to the charges. He was ordered to remain in custody.
Prosecutors allege that between 2018 and 2024, Gotbit engaged in fraudulent market-making practices, artificially inflating the prices and trading volumes of digital tokens for client companies, including U.S.-based firms.
The DOJ states that the company employed deceptive tactics such as wash trading, falsifying liquidity, and price manipulation to create a misleading perception of investor demand.
Gobit Founder Accused of Inflating Crypto Prices Through Deceptive Tactics
Andriunin had previously acknowledged Gotbit’s controversial methods. In a 2019 interview with CoinDesk, while still a student at Moscow State University, he admitted that his business practices were “not entirely ethical.”
According to court documents, Gotbit generated tens of millions of dollars through its market manipulation activities. Andriunin is accused of transferring millions in profits directly to his personal Binance account.
Gotbit and its founder were among 15 individuals and three firms charged in October as part of “Operation Token Mirrors,” an FBI-led investigation into fraudulent activities in the cryptocurrency sector. As part of the operation, the FBI reportedly developed its own digital token to uncover illicit trading schemes.
| Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing. |
