Gotbit Founder Extradited to US for Crypto Fraud and Manipulation

Highlights:

• Gotbit founder Aleksei Andriunin has been extradited to the US for fraud.
• Authorities say Gotbit used fake trading to trick investors and inflate cryptocurrency values.
• Andriunin could face up to 25 years in prison for fraud and an additional 5 years for manipulating the market.

Gotbit founder Aleksei Andriunin has been extradited from Portugal to the United States. Authorities arrested him in Portugal last year and transferred him to U.S. custody this month. He appeared in Boston federal court, where the judge ordered him to remain in detention. Authorities accuse Aleksei of wire fraud and manipulating the market, and he also faces charges of fraudulent practices in the industry.

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Market maker Gotbit founder extradited to the US to face fraud charges for market manipulation

Aleksei Andriunin, founder of market maker Gotbit, was extradited to the United States on Tuesday to face fraud charges related to his company's involvement in manipulating token pri…

— Bpay News (@bpaynews) February 27, 2025

A federal grand jury in Boston indicted Andriunin, and the U.S. Attorney’s Office in Massachusetts is handling the case. The indictment also includes Gotbit directors Fedor Kedrov and Qawi Jalili. However, they are still at large, and investigators are searching for them.

Authorities accuse Gotbit of engaging in an illegal activity called “wash trading.” The method involves creating fake trading volumes for tokens. Moreover, the fake volume lures investors who invest in the coins. The company used the method to list the cryptocurrencies on major platforms like CoinMarketCap.

Investigators Uncover Widespread Crypto Market Manipulation

According to prosecutors, Gotbit generated profit through market manipulation. Court documents show that Andriunin deposited some of the funds from the scheme into his Binance account. The investigation further revealed that Gotbit inflated trading volumes artificially. This gave credibility to unpopular cryptocurrencies. The practice harmed investors who relied on manipulated information.

Andriunin’s case follows the recent extradition of Terraform Labs founder Do Kwon. He was arrested in Montenegro and later sent to the U.S. to face fraud charges. Authorities linked his case to the collapse of TerraUSD and Luna, which caused huge losses. Authorities have stepped up investigations in the crypto sector. As part of the crackdown, the FBI launched Operation Token Mirrors. The operation has led authorities to charge several people and companies with market manipulation.

According to authorities, the Gotbit case is one of the most extensive cryptocurrency fraud investigations. The FBI recently created its own digital token to monitor such activities. The move has helped authorities detect several schemes that artificially inflate cryptocurrency prices. Moreover, CLS Global faced a similar offense to Gotbit at the beginning of this year.

Legal Proceedings and the Search for Other Directors

If convicted, the court could sentence Andriunin to up to 20 years in prison for wire fraud and an additional five years for conspiracy to commit market manipulation. Prosecutors may also pursue fines and take his assets.

Gotbit directors Fedor Kedrov and Qawi Jalili are still at large, and authorities are on the search for the two directors. Andriunin’s extradition resulted from international cooperation between the United States, Portugal, and Interpol. It is one of several recent fraud-related cases involving cryptocurrency. There is a growing effort by law enforcement around the globe to regulate digital financial crime. The result of this case could impact future enforcement actions related to the crypto industry.

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