Founder of cryptocurrency firm admits to market manipulation scheme in United States

Aleksei Andriunin, the owner of Gotbit, which specializes in cryptocurrency trading, recently pleaded guilty to charges in the United States related to market manipulation for several client companies. Andriunin, a Russian national and the CEO of Gotbit, admitted to participating in a scheme to manipulate the digital token market through fraudulent practices.

His guilty plea and that of his company were part of an investigation known as “Operation Token Mirrors,” in which the FBI created its digital token to uncover fraudulent activities in the cryptocurrency market. Following his extradition from Portugal, where he was residing at the time of his arrest, Andriunin and Gotbit were among 15 individuals and three companies charged in connection with market manipulation and wire fraud.

Prosecutors revealed that Andriunin’s company engaged in “wash trading” and market manipulation between 2018 and 2024, artificially inflating trading volumes for various cryptocurrencies to benefit his clients. Gotbit’s practices included conducting sham trades to make it seem like there was genuine trading activity, allowing these tokens to be listed on major cryptocurrency exchanges. Through these activities, Gotbit earned significant profits, with Andriunin detailing the use of a special code to conduct these wash trades in a published interview from 2019.

Gotbit’s fraudulent practices involved cryptocurrencies such as Saitama and Robo Inu, with the company receiving millions from these operations. As part of their plea agreement, Andriunin faces a potential prison sentence of up to two years, with Gotbit agreeing to forfeit approximately $23 million worth of cryptocurrency as part of the settlement.

Andriunin’s lawyer declined to comment on the case, and the sentencing is scheduled for June 16. The guilty pleas are a significant development in cracking down on market manipulation in the cryptocurrency industry, shedding light on the deceptive practices employed to boost trading volumes and artificially inflate prices for various tokens. The investigation into Andriunin and Gotbit serves as a warning to others involved in similar activities, highlighting the consequences and legal actions that can result from engaging in fraudulent behavior within the cryptocurrency market.