Gotbit – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 14 Jun 2025 20:08:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Gotbit – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Crypto market maker Gotbit and founder sentenced for fraud, manipulation https://earlybirdsinvest.com/crypto-market-maker-gotbit-and-founder-sentenced-for-fraud-manipulation/ https://earlybirdsinvest.com/crypto-market-maker-gotbit-and-founder-sentenced-for-fraud-manipulation/#respond Sat, 14 Jun 2025 20:08:18 +0000 https://earlybirdsinvest.com/crypto-market-maker-gotbit-and-founder-sentenced-for-fraud-manipulation/

Gotbit Consulting LLC, a prominent cryptocurrency market maker, was sentenced in federal court for criminal charges related to a multi-year scheme to manipulate digital asset trading volumes, according to a June 13 press release.

Aleksei Andriunin, the firm’s 26-year-old founder and CEO, was sentenced to eight months in prison and one year of supervised release for conspiracy to commit wire fraud and market manipulation.

The Russian-Portuguese national was extradited from Portugal to the U.S. earlier this year after his arrest in October 2024.

Prosecutors say Gotbit orchestrated a sophisticated scheme between 2018 and 2024 that involved “wash trading,” which involves the use of multiple accounts to create fake trades and inflate apparent market activity, on behalf of various token issuers, including Robo Inu and Saitama.

Forfeiture and corporate shutdown

As part of a plea agreement, Gotbit was sentenced to five years of probation and ordered to forfeit approximately $23 million in seized cryptocurrency.

The firm, which was based outside the United States but worked with numerous U.S.-accessible crypto platforms, is now required to cease all operations.

Gotbit’s services included generating artificial trading volume to help client tokens gain visibility on platforms such as CoinMarketCap and achieve listings on top-tier exchanges.

In a 2019 interview, Andriunin openly admitted to developing wash trading software that enabled such tactics while avoiding blockchain detection.

Cracking down on market abuse

Gotbit is the third market-making firm to be prosecuted for wash trading since 2024. Earlier cases involved MyTrade and CLS Global, both ensnared in an undercover federal operation aimed at exposing market abuse in the digital asset sector.

Gotbit’s directors, Fedor Kedrov and Qawi Jalili, remain under indictment, with criminal proceedings ongoing. Meanwhile, the Securities and Exchange Commission (SEC) has launched a parallel civil enforcement action accusing Gotbit of securities law violations.

The criminal case was prosecuted by Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb, with asset forfeiture handled by AUSA Carol Head of the Asset Recovery Unit. The FBI’s Boston Division led the investigation.

]]> https://earlybirdsinvest.com/crypto-market-maker-gotbit-and-founder-sentenced-for-fraud-manipulation/feed/ 0 42032 Gotbit CEO Faces Justice: $23 Million Crypto Forfeited in US Deal https://earlybirdsinvest.com/gotbit-ceo-faces-justice-23-million-crypto-forfeited-in-us-deal/ https://earlybirdsinvest.com/gotbit-ceo-faces-justice-23-million-crypto-forfeited-in-us-deal/#respond Thu, 20 Mar 2025 22:35:31 +0000 https://earlybirdsinvest.com/gotbit-ceo-faces-justice-23-million-crypto-forfeited-in-us-deal/

The founder of Gotbit, Aleksei Andriunin, has agreed to a plea deal with US prosecutors after being accused of manipulating cryptocurrency markets.

Under the agreement, he will forfeit approximately $23 million in Tether
USDT


$0.9966

and USD Coin
USDC


$0.9977

, according to a report from Law360 on March 19.

The plea deal includes Andriunin admitting guilt to three charges related to conspiracy to commit wire fraud and market manipulation. A signed letter from March 19 outlines these charges, confirming his acknowledgment of wrongdoing.

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In the agreement, Andriunin also accepts that forfeiting the funds does not clear any other penalties or debts he may owe to the US government. This includes fines, restitution, or any other financial obligations that could arise from the case.

A letter from the US Attorney for the District of Massachusetts, Leah Foley, further clarifies that this deal only applies to Andriunin and the prosecutors involved. It does not prevent other federal, state, or local authorities from taking action against him.

Additionally, the letter states that the court is not required to follow the sentencing recommendations set in the plea deal. Andriunin will not be able to withdraw his guilty plea if the final sentence differs from his expectations.

According to a February 26 statement from the US Attorney, Andriunin was arrested in Portugal on October 8, 2024, and extradited to the United States on February 25, 2025. What exactly did he do? Read the full story.

Aaron S. Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

]]> https://earlybirdsinvest.com/gotbit-ceo-faces-justice-23-million-crypto-forfeited-in-us-deal/feed/ 0 26289 US Charges Gotbit Founder in Multi-Million Crypto Scam https://earlybirdsinvest.com/us-charges-gotbit-founder-in-multi-million-crypto-scam/ https://earlybirdsinvest.com/us-charges-gotbit-founder-in-multi-million-crypto-scam/#respond Thu, 27 Feb 2025 14:35:21 +0000 https://earlybirdsinvest.com/us-charges-gotbit-founder-in-multi-million-crypto-scam/

US authorities have taken custody of Aleksei Andriunin, the founder of Gotbit, a company accused of manipulating crypto markets.

He was arrested in Portugal on October 8, 2024, and extradited to the United States on February 25, 2025.

According to the February 26 statement from the US Attorney’s Office for the District of Massachusetts, he appeared in a Boston federal court, where a judge ruled that he would remain in detention while the case proceeds.

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Andriunin, a Russian citizen, is facing serious charges alongside two Gotbit executives, Fedor Kedrov and Qawi Jalili. The three were indicted by a US grand jury on October 31. Their involvement allegedly came to light when the FBI launched NexFundAI (NEXF), a fake crypto token designed to expose fraudulent trading practices.

Prosecutors say Gotbit’s business revolved around artificially inflating trading activity. The company reportedly used software to execute wash trades, making it seem like certain tokens had high demand.

Investigators estimate that Gotbit made tens of millions of dollars from these activities between 2018 and 2024. Andriunin himself is accused of transferring some of the proceeds into his Binance



$15.48B

account.

Andriunin could face up to 20 years in prison for wire fraud, along with a fine that could reach $250,000. Additional conspiracy charges related to market manipulation could add another five years to his sentence.

Recently, Zservers, a Russia-based hosting provider, received penalties from authorities in the US, UK, and Australia. Why? Read the full story.

Aaron S. Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

]]> https://earlybirdsinvest.com/us-charges-gotbit-founder-in-multi-million-crypto-scam/feed/ 0 22220 Gotbit founder extradited to US to face market manipulation and fraud charges https://earlybirdsinvest.com/gotbit-founder-extradited-to-us-to-face-market-manipulation-and-fraud-charges/ https://earlybirdsinvest.com/gotbit-founder-extradited-to-us-to-face-market-manipulation-and-fraud-charges/#respond Wed, 26 Feb 2025 20:59:42 +0000 https://earlybirdsinvest.com/gotbit-founder-extradited-to-us-to-face-market-manipulation-and-fraud-charges/

Gotbit founder Aleksei Andriunin has been extradited to the US to face charges related to market manipulation and wire fraud conspiracy, according to a Feb. 26 statement by the US Attorney’s Office District of Massachusetts.

Andriunin was arrested on Oct. 8, 2024, by authorities in Portugal, where he was living. Following his extradition, he appeared in federal court in Boston on Feb. 25 and was ordered to be detained pending a future hearing. 

On Oct. 31, 2024, a federal grand jury in Boston indicted Andriunin and Gotbit directors Fedor Kedrov and Qawi Jalili on charges of wire fraud and conspiracy to commit market manipulation and wire fraud.

Market manipulation

According to court documents, Gotbit allegedly operated as a “market maker” in the crypto industry, providing market manipulation services between 2018 and 2024. 

Andriunin allegedly created software to facilitate “wash trading,” a practice that artificially inflates trading volumes. This tactic helped projects secure listings on data aggregators such as CoinMarketCap and gain entry to larger exchanges.

Investigators allege that Gotbit employees, including Jalili and Kedrov, marketed these tactics to clients and used multiple accounts to disguise the wash trading from blockchain observers. 

The scheme reportedly involved transactions worth millions of dollars, with Gotbit generating tens of millions in revenue from fraudulent activities. The authorities accuse Andriunin of transferring a portion of these proceeds into his personal Binance account.

If convicted, Andriunin faces up to 20 years in prison for wire fraud and up to five years for conspiracy to commit market manipulation and wire fraud. He could also be subject to fines of up to $250,000 or twice the gross gain or loss from the offenses, restitution, and forfeiture.

Artificial trading volume

The US Securities and Exchange Commission (SEC) also filed fraud charges against Gotbit and its employee, Fedor Kedrov, on Oct. 15, 2024.

The SEC alleged that the platform used a scheme to manipulate the market for “Robo Inu,” a crypto asset marketed as a security to retail investors.

According to the SEC complaint, crypto asset promoter Vy Pham hired Gotbit to generate artificial trading volume for Robo Inu. Gotbit allegedly employed wash trading techniques to generate fake market activity on trading platforms. 

Investigators claim the firm used automated trading algorithms to fabricate over $1 million daily artificial trading volume.

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