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Aleksei Andriunin, the founder and CEO of crypto market maker Gotbit, has been sentenced to eight months in prison for his involvement in a multi-million-dollar wash trading scheme. This scheme was designed to artificially inflate trading volumes for various cryptocurrencies, misleading investors and market participants.

The Sentencing and Legal Proceedings

U.S. District Court Judge Angel Kelley in Boston handed down the sentence following Andriunin’s guilty plea in March 2025 to charges of wire fraud and conspiracy to commit market manipulation. The 26-year-old, who holds dual citizenship in Russia and Portugal, was initially arrested in Portugal in October 2024. He was later extradited to the United States in February 2025 to face the charges.

As part of a plea agreement, Andriunin agreed to forfeit $23 million in stablecoins stored in crypto wallets associated with Gotbit. Additionally, his firm, Gotbit Consulting LLC, was sentenced to five years of probation and ordered to cease operations.

Gotbit’s Role in Wash Trading

Gotbit Consulting LLC admitted to providing wash trading services between 2018 and 2024. Wash trading involves executing trades that give the illusion of high market activity without legitimate financial transactions. This practice was used to manipulate trading volumes, making client tokens appear more active and enticing for exchange listings and rankings on platforms like CoinMarketCap.

How Gotbit Operated

Prosecutors revealed that Gotbit utilized multiple accounts to evade blockchain detection. Through these accounts, the company facilitated wash trading activities for various cryptocurrency tokens, including Robo Inu and Saitama. In return, Gotbit received tens of millions of dollars in payments from clients seeking to boost the perceived credibility of their tokens.

Other Key Individuals and Legal Actions

The investigation also implicated Gotbit directors Fedor Kedrov and Qawi Jalili, who were indicted on related charges. Gotbit is the third crypto market maker to face charges for illegal trading practices, following similar actions against MyTrade and CLS Global.

In addition to the criminal charges, the Securities and Exchange Commission (SEC) has initiated a separate civil enforcement action against Gotbit for violating securities laws.

Additional Penalties for Andriunin

Alongside his prison sentence, Andriunin will serve one year of supervised release. During this period, he is prohibited from engaging in any crypto-related activities.

Key Takeaways for Crypto Investors

For those interested in cryptocurrency investing, this case highlights the importance of understanding market manipulation tactics such as wash trading. Here are some tips to help protect yourself:

  • Research Thoroughly: Analyze a token’s trading volume and activity to ensure it reflects genuine market interest.
  • Verify Exchange Listings: Be cautious of tokens that suddenly appear on multiple exchanges with unusually high volume.
  • Stay Updated: Follow regulatory developments to understand how authorities are addressing fraudulent practices in the crypto space.

This sentencing underscores growing regulatory scrutiny over illegal activities in cryptocurrency markets as authorities work to protect investors and ensure fair trading practices.

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