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Gotbit Founder Aleksei Andriunin has entered into a plea agreement with U.S. prosecutors, which, if approved, will require him to forfeit approximately $23 million in stablecoins. This agreement could allow him to avoid significant prison time and additional fines.

Plea Agreement Details

Andriunin, the founder of market-making firm Gotbit, has pleaded guilty to one count of market manipulation and two counts of wire fraud. According to court documents, he faced potential prison sentences exceeding 20 years. However, under the terms of the plea deal, his incarceration could be limited to up to 24 months, followed by 36 months of supervised release.

As part of the supervised release conditions, Andriunin will be prohibited from participating in any cryptocurrency-related activities during the three-year period. Additionally, he will not be required to pay further fines, provided he forfeits all cryptocurrency assets derived from his offenses.

Asset Forfeiture Breakdown

The agreement stipulates that Andriunin will forfeit approximately $23 million in stablecoins, which include:

  • $14 million in USDT (Tether), stored in two separate cryptocurrency wallets.
  • $9 million in USDC (USD Coin), held across two additional wallets.

These assets, while listed under Gotbit Consulting LLC, are controlled solely by Andriunin on behalf of the company. The agreement includes the consent of Gotbit for civil forfeiture of these assets, bypassing criminal forfeiture proceedings.

Potential Penalties and Restitution

Federal prosecutors estimate that the charges could have resulted in fines of up to $500,000 or twice the amount gained or lost through the offenses. Andriunin also faces restitution payments and asset forfeiture penalties, alongside a potential five-year probation period. However, the plea deal significantly reduces his financial and legal liabilities, contingent upon asset forfeiture.

Background on the Case

In November of last year, Andriunin was accused of orchestrating a long-running “wash trading” scheme. This scheme involved artificially inflating trading volumes and executing fake trades to manipulate the market. These activities allegedly took place between 2018 and 2024 while he served as Gotbit’s CEO.

Gotbit is one of four companies implicated in the first-ever criminal prosecution targeting market manipulation and sham trading within the cryptocurrency industry. The other companies charged in this case include ZM Quant, CLS Global, and MyTrade.

Government Statement

“Defendant agrees to assist fully in the forfeiture of the above assets. Defendant agrees to promptly take all steps necessary to pass clear title to the above assets to the United States,” stated Lead B. Foley from the U.S. Attorney’s Office.

This case highlights increasing scrutiny of fraudulent activities in the cryptocurrency sector as regulatory bodies seek to bring greater transparency and accountability to the industry.

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