Gotbit Founder Extradited to the US

Aleksei Andriunin, the 26-year-old CEO and founder of the crypto market-making firm Gotbit, has been extradited from Portugal to the United States. As a Russian national, Andriunin now confronts serious allegations, including wire fraud, market manipulation, and conspiracy, following an indictment by a federal grand jury in Boston.

Details of the Extradition

The US Attorney’s Office for the District of Massachusetts confirmed Andriunin's extradition on February 26. This event represents a significant milestone in a broad international crackdown on cryptocurrency fraud.

“It is alleged that between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies, including those based in the United States,” the press release stated.

Market Manipulation Techniques

Court documents reveal that Andriunin had acknowledged during a 2019 interview his involvement in creating code to facilitate “wash trades.” This strategy involves a trader simultaneously buying and selling the same asset, generating a misleading impression of heightened trading volume.

“Records allegedly maintained by Andriunin showcased Gotbit's market manipulation strategies, including spreadsheets that computed 'Created Volume' from wash trades alongside naturally occurring 'Market Volume,'” the indictment indicated.

The prosecution argues that these deceptive practices formed a crucial part of Gotbit’s approach to attract clients, who unknowingly paid high fees under the impression of receiving legitimate market support.

Misappropriation of Funds

In addition, there are allegations that Andriunin funneled millions of dollars from Gotbit to his personal account on the Binance crypto exchange.

Broader Implications

This case is part of a larger international initiative to mitigate cryptocurrency fraud, led by the Federal Bureau of Investigation under the operation titled “Operation Token Mirrors.” As part of this investigation, the FBI developed a fictitious token named NexFundAI aimed at detecting manipulators.

The operation has reportedly resulted in the seizure of over $25 million in cryptocurrency assets and the dismantling of several trading bots tied to approximately 60 tokens used for misleading investors regarding trading volumes.

Legal proceedings initiated with an indictment unsealed on October 9, 2024, charged 18 individuals and entities, including Gotbit and its directors Fedor Kedrov and Qawi Jalili. A subsequent superseding indictment on October 31, 2024, further outlined Andriunin's alleged involvement in orchestrating the conspiracy.

Potential Consequences for Andriunin

If convicted, Andriunin could face a maximum sentence of up to 20 years for wire fraud, along with an additional five years for conspiracy related to market manipulation and wire fraud. Each charge could incur fines of up to $250,000 or double the financial harm caused, in addition to supervised release, restitution, and forfeiture of assets.