Boston, MA – Aleksei Andriunin, the founder and CEO of cryptocurrency financial services firm Gotbit, pleaded guilty on Friday to charges of market manipulation and wire fraud in a U.S. federal court. The Russian national, extradited from Portugal last month, admitted to engaging in fraudulent practices to artificially inflate trading volumes for digital tokens on behalf of clients.
The case against Andriunin, 26, was part of a broader investigation known as “Operation Token Mirrors,” a first-of-its-kind probe in which the FBI created its own digital token to uncover fraudulent activities in the cryptocurrency market. The operation led to charges against 15 individuals and three companies for alleged market manipulation.
Federal prosecutors accused Andriunin and Gotbit of participating in “wash trading” between 2018 and 2024. Wash trading involves executing sham transactions to create a false impression of market activity, thereby misleading investors and exchanges about the liquidity and popularity of a token. Prosecutors stated that Gotbit carried out millions of dollars in such transactions, earning tens of millions in fees from cryptocurrency clients, including Saitama and Robo Inu.
During the court proceedings, Andriunin and his company admitted to the charges as part of a plea agreement. Prosecutors have agreed to recommend a prison sentence of up to two years for Andriunin, with sentencing scheduled for June 16. Additionally, Gotbit has agreed to forfeit approximately $23 million in cryptocurrency obtained through its fraudulent operations.
The allegations against Andriunin were supported by a 2019 interview, cited in the indictment, in which he openly discussed developing a trading algorithm designed to inflate token trading volumes. The fraudulent activity helped lesser-known cryptocurrencies secure listings on major exchanges, misleading traders and investors.
Authorities also revealed that individuals associated with Saitama and Robo Inu tokens had been charged in connection with the case. The crackdown is part of broader efforts by U.S. regulators to combat fraudulent practices in the digital asset sector, which has been under increasing scrutiny due to concerns over manipulation and investor protection.
Andriunin’s legal representatives have yet to issue a statement regarding the plea. Meanwhile, law enforcement agencies continue to investigate other potential fraudulent activities within the cryptocurrency industry.
The case underscores growing efforts by U.S. authorities to regulate the rapidly evolving digital asset market and hold bad actors accountable for deceptive trading practices. Legal experts believe the outcome of this case could set a precedent for future regulatory enforcement in the cryptocurrency sector.
