Gotbit CEO Jailed for Crypto Wash Trading in $23M Fraud Case
Gotbit’s CEO utilized code to pump up trading activity, protecting listings and investor buzz with fake volume. Gotbit should stop all operations for 5 years after confessing to wash trading for shady token projects. The post Gotbit CEO Jailed for Crypto Wash Trading in $23M Scams Case appeared initially on CoinCentral.
TLDRAleksei Andriunin gets 8 months in jail and surrenders $23M for fabricating token volumes from 2018 to 2024. Gotbit’s CEO utilized code to inflate trading activity, securing listings and investor hype with fake volume.Gotbit must stop all operations for 5 years after confessing to wash trading for dubious token projects.Andriunin pleads guilty to market scams, loses millions, and agrees to stay out of crypto during supervision.Justice Department targets Gotbit, signs up with MyTrade and CLS Global in most current wave of market adjustment busts.Aleksei Andriunin, CEO of crypto company Gotbit, received an eight-month prison sentence for orchestrating an extensive wash trading plan. The sentencing follows his March 2025 guilty plea to wire fraud and market manipulation charges involving millions in fake trading volumes. Prosecutors verified he will also serve one year of supervised release and forfeit $23 million in stablecoins tied to deceptive activity.
Wash Trading Plan Used to Pump up Token VolumesAuthorities found that Andriunin developed custom-made code to develop artificial trading activity across multiple tokens from 2018 to 2024. He then used these inflated volumes to control listings on platforms like CoinMarketCap and safe exchange access. Gotbit ran these operations throughout different accounts to hide the activity from blockchain records.
Aleksei Andriunin, creator of crypto market maker Gotbit, was sentenced to 8 months in jail and 1 year of supervised release by a U.S. federal court on June 13 for orchestrating millions in wash trading from 2018 to 2024. Gotbit received 5 years’ probation and should stop…
The business promoted these services to crypto start-ups as a method to bring in investor interest and enhance presence. This scheme produced tens of millions of dollars in client payments while deceiving the marketplace. Prosecutors linked the technique to a number of low-cap tokens, consisting of Robo Inu and Saitama.
Andriunin ran the operation from Russia and Portugal before his arrest in Lisbon in October 2024. Authorities extradited him to the U.S. in February 2025, where he entered a plea offer. The offer consisted of punitive damages and a commitment to withdraw from crypto markets during the monitored release period.
Gotbit Consulting Sentenced to Stop OperationsGotbit Consulting LLC received a five-year probation order and must suspend all services during that time. The court discovered the firm straight accountable for enabling prevalent market control throughout several possessions. It admitted to running wash trading for clients aiming to phony genuine activity.
Prosecutors stated Gotbit built internal systems to coordinate fake trades while preventing blockchain detection. The company got millions in charges from start-ups seeking exposure on exchanges and information aggregators, and its business model violated federal securities and fraud laws.
Two business directors, Fedor Kedrov and Qawi Jalili, also deal with related criminal charges in the exact same plan. The Department of Justice verified their indictment as part of a broader crackdown on crypto market adjustment. Investigators stated their actions contributed to systemic threats within the digital property space.
Broader Regulatory Crackdown on Crypto Market MakersGotbit now joins a growing list of market makers penalized for unlawful trading practices, following actions versus MyTrade and CLS Global. The U.S. Department of Justice is increasing efforts to remove fraudulent activity in the digital property sector. These efforts target companies taken part in deception, misrepresentation, and unregistered trading schemes.
The Securities and Exchange Commission also submitted a different civil case against Gotbit for breaching securities laws. This civil action looks for more charges and long-term restrictions versus those associated with the control. Regulators intend to secure investors from misleading token activity and ensure a level playing field in crypto trading.
Andriunin’s sentencing shows the legal consequences of market manipulation. It likewise highlights increasing global cooperation, as seen in his extradition from Portugal to the United States. The case reinforces the urgent requirement for transparency and accountability in the crypto ecosystem.
The post Gotbit CEO Jailed for Crypto Wash Trading in $23M Scams Case appeared initially on CoinCentral.
