Gotbit Founder Gives Up $23M in Stablecoins In Fraud Plea Deal

Alex Andryunin, the founder of Gotbit, has signed a plea deal with Leah B. Foley, the U.S. Attorney for the District of Massachusetts, regarding wire fraud and crypto market manipulation charges. According to a court document, this deal requires Andryunin to give up around $23 million in USDT and USDC stablecoins. In return, pending court approval, he may receive a lighter sentence.

Gotbit Founder Admits to Wire Fraud and Market Manipulation

As part of the agreement, Andryunin will admit to one count of conspiracy to commit wire fraud and market manipulation and two more counts of wire fraud. For the first count, he faced up to five years in prison plus three years of supervised release, fines, restitution, and forfeiture.

The two additional wire fraud counts carried more stringent penalties. Each with a maximum sentence of 20 years in prison, three years of supervised release, fines, restitution, and forfeiture. 

Under the plea agreement, the U.S. Attorney’s Office will recommend a prison sentence of up to 24 months, followed by 36 months of supervised release. No fines will be imposed due to the forfeiture, but the court will decide on restitution at sentencing. Andryunin agreed not to partake in cryptocurrency activities, like issuing, buying, or selling on any U.S.-based trading platform. 

By accepting this plea agreement, Andryunin gives up his right to withdraw his guilty plea, which means the court’s decision is final. The Russian national was extradited to the United States last month for allegedly manipulating cryptocurrency markets on behalf of client cryptocurrency companies. 

Criminal Proceedings in the Crypto Space

This case adds to the list of ongoing criminal proceedings involving prominent figures in the cryptocurrency space. In April last year, Avraham Eisenberg, the $110 million hacker of the Mango Markets decentralized exchange also faced charges. Authorities found guilty of fraud and market manipulation.

Similarly, former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for seven felony charges, though his legal team has indicted their intention to appeal. Additionally, former Binance CEO Changpeng Zhao pleaded guilty to one felony charge.

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