Gotbit founder extradited to US to face market manipulation and fraud charges

Gotbit laminitis Aleksei Andriunin has been extradited to the US to look charges related to marketplace manipulation and ligament fraud conspiracy, according to a Feb. 26 statement by the US Attorney’s Office District of Massachusetts.

Andriunin was arrested connected Oct. 8, 2024, by authorities successful Portugal, wherever helium was living. Following his extradition, helium appeared successful national tribunal successful Boston connected Feb. 25 and was ordered to beryllium detained pending a aboriginal hearing. 

On Oct. 31, 2024, a national expansive assemblage successful Boston indicted Andriunin and Gotbit directors Fedor Kedrov and Qawi Jalili connected charges of ligament fraud and conspiracy to perpetrate marketplace manipulation and ligament fraud.

Market manipulation

According to tribunal documents, Gotbit allegedly operated arsenic a “market maker” successful the crypto industry, providing marketplace manipulation services betwixt 2018 and 2024. 

Andriunin allegedly created bundle to facilitate “wash trading,” a signifier that artificially inflates trading volumes. This maneuver helped projects unafraid listings connected information aggregators specified arsenic CoinMarketCap and summation introduction to larger exchanges.

Investigators allege that Gotbit employees, including Jalili and Kedrov, marketed these tactics to clients and utilized aggregate accounts to disguise the lavation trading from blockchain observers. 

The strategy reportedly progressive transactions worthy millions of dollars, with Gotbit generating tens of millions successful gross from fraudulent activities. The authorities impeach Andriunin of transferring a information of these proceeds into his idiosyncratic Binance account.

If convicted, Andriunin faces up to 20 years successful situation for ligament fraud and up to 5 years for conspiracy to perpetrate marketplace manipulation and ligament fraud. He could besides beryllium taxable to fines of up to $250,000 oregon doubly the gross summation oregon nonaccomplishment from the offenses, restitution, and forfeiture.

Artificial trading volume

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

The SEC alleged that the level utilized a strategy to manipulate the marketplace for “Robo Inu,” a crypto plus marketed arsenic a information to retail investors.

According to the SEC complaint, crypto plus promoter Vy Pham hired Gotbit to make artificial trading measurement for Robo Inu. Gotbit allegedly employed lavation trading techniques to make fake marketplace enactment connected trading platforms. 

Investigators assertion the steadfast utilized automated trading algorithms to fabricate implicit $1 cardinal regular artificial trading volume.

The station Gotbit laminitis extradited to US to look marketplace manipulation and fraud charges appeared archetypal connected CryptoSlate.