Gotbit CEO Faces DOJ Indictment for Alleged Wash Trading Scheme

By: Eva Baxter

The United States Department of Justice has announced an indictment against Aleksei Andriunin, the founder and CEO of the crypto financial services firm Gotbit. Andriunin faces severe accusations of orchestrating a substantial wash trading scheme, fraudulently manipulating crypto markets for enormous financial gains. As outlined in the unsealed indictment filed in the District of Massachusetts, he, along with Gotbit and its directors, has been charged with wire fraud and conspiracy to commit market manipulation.

The alleged criminal activities took place between 2018 and 2024, during which Andriunin and Gotbit supposedly used wash trading tactics to manipulate trading volumes for client crypto companies. Prosecutors claim that this artificial inflation of trade volumes was significant in securing listings on prominent platforms such as CoinMarketCap and other major exchanges, where exposure could result in significant financial returns.

Andriunin reportedly developed specialized software to facilitate these deceptive activities, creating false trading activity that misled investors and exchanges alike. The indictment also indicates that Gotbit employees specialized in marketing these illegal services to clients, demonstrating techniques to avoid detection on the blockchain. Allegations further extend to Gotbit's role in promoting pump-and-dump schemes, where they allegedly targeted memecoin investors by falsely inflating market volume to inflate token value, consequently leading to significant investor losses upon sell-offs.

The indictment showcases evidence gathered through the DOJ's Operation Token Mirrors, an investigation that created a fake token to study and collect data on such fraudulent practices. If the charges are proven, Andriunin could face a maximum sentence of 20 years due to wire fraud charges, alongside other potential penalties including heavy fines, restitution, and the possibility of forfeiture. The case outcome will be determined by a federal judge, guided by the U.S. Sentencing Guidelines, signaling a major crackdown on unethical practices within the crypto industry.