π Boston, March 21, 2025 β In a major legal twist, Aleksei Andriunin, the founder and CEO of crypto market-making firm Gotbit, has pleaded guilty to charges of market manipulation and wire fraud in the United States. βοΈ The guilty pleas were submitted in federal court in Boston and mark a significant moment in ongoing efforts to clean up the crypto industry.
This high-profile arrest is part of a groundbreaking FBI investigation dubbed „Operation Token Mirrors.” As part of the probe, the FBI created its own digital token to catch fraudulent actors in the crypto space β a first in U.S. law enforcement history. π΅οΈββοΈπͺ
Andriunin, a 26-year-old Russian national, was extradited from Portugal after his October 2024 arrest. His company, Gotbit, was one of three firms indicted alongside 15 individuals.
π§Ύ How the Scheme Worked
From 2018 to 2024, Gotbit allegedly engaged in large-scale „wash trading” β a form of fake trading designed to artificially inflate the trading volume of cryptocurrencies. This misleading tactic aimed to attract attention from major exchanges and boost token prices. ππ°
In a 2019 interview, Andriunin even admitted to developing custom code to automate these fake transactions.
πΈ Millions in Manipulated Trades
Prosecutors revealed that Gotbit executed millions of dollars worth of wash trades and earned tens of millions in revenue from projects such as Saitama and Robo Inu. Individuals connected to these tokens were also charged. β οΈ
As part of the plea deal, Gotbit has agreed to forfeit approximately $23 million in crypto assets. Prosecutors have recommended a prison sentence of up to two years for Andriunin, with sentencing scheduled for June 16, 2025. β³
