Gotbit CEO Sentenced for Crypto Market Manipulation in U.S. Court

Aleksei Andriunin, the founder and CEO of Gotbit, has been sentenced to eight months in prison. The 26-year-old was found guilty of manipulating the crypto market through illegal wash trades.

The U.S. District Court in Massachusetts passed the sentence on June 13, adding one year of supervised release. His company, Gotbit, will be on probation for five years and must stop operations.

Authorities Uncover Culprit’s Deceptive Trading Practices

According to prosecutors, Andriunin and others created crypto firms and made false claims about their digital assets.  They also faked trades to make it seem like people were buying and selling.

For context, wash trading involves repeatedly buying and selling the same asset to create the illusion of market demand. These fake trades inflate token prices, misleading investors and exchanges. 

Andriunin, who holds dual citizenship in both Russia and Portugal, was arrested in Portugal in October 2024. After his arrest, he was extradited to the United States in February 2025. In March, he signed a fraud plea deal with U.S. authorities in exchange for a lighter prison. 

The Role of Gotbit in the Crypto Scheme

Gotbit, the company run by Andriunin, operated from 2018 to 2024. Prosecutors said it helped clients fake trading activity to boost volume. In a 2019 interview, Andriunin explained how he wrote a program to carry out wash trades. 

This made it easier for tokens to get listed on platforms like CoinMarketCap and major crypto exchanges. Prosecutors stated that Gotbit employees explained these tactics to potential clients. They used many accounts to hide the wash trades from public view on the blockchain.

The scheme brought in millions of dollars for Gotbit and its clients. Andriunin’s prison sentence is one of the latest steps by U.S. authorities to fight fraud in the crypto world.

A Growing Global Industry Trend

Crypto market manipulation through tactics like wash trading is a global industry trend. Regulatory bodies worldwide have been cracking down on it in recent years. 

In 2018, South Korean prosecutors accused top executives at Upbit of using fake orders to boost trading volume. These fake trades, worth more than $226 billion, were meant to mislead investors. It became one of the first major wash trading cases to gain global attention.

In the U.S., the regulatory agency has also taken action against several people and companies for similar activities. In 2024, Michael Kane, the former CEO of Hydrogen Technology Corp, was sentenced to 45 months in prison for helping to manipulate the price of a cryptocurrency.

Many leaders, including Hillary Clinton, have emphasized the need for clear and strong rules to protect investors from market manipulation.

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