Reported by Nate Raymond from Boston, we’ve learned that the mastermind behind a cryptocurrency financial services outfit has admitted to U.S. charges linked to a sprawling plan to sway the digital token market for client benefits.
Aleksei Andriunin, the brains and chief executive behind the cryptocurrency “market maker” Gotbit, along with his company, acknowledged their wrongdoings in a federal court in Boston. They conceded to charges of conspiring in market manipulation and committing wire fraud.
Andriunin, a 26-year-old Russian, found himself in this legal predicament shortly after being extradited from Portugal, where he was caught in October during a broader inquiry into the crypto industry.
This case is one of several emerging from “Operation Token Mirrors,” a groundbreaking FBI investigation. It’s the first to involve the Bureau creating its digital token as a means to nab crypto market fraudsters. In total, 15 individuals and three firms face charges from this operation.
As part of their plea arrangements, prosecutors plan to propose a sentencing of up to two years in prison for Andriunin, come June 16. Gotbit, meanwhile, has agreed to surrender approximately $23 million in digital currency.
Attempts to reach Andriunin’s attorney for a comment were unsuccessful.
Authorities revealed that between 2018 and 2024, Gotbit was involved in “wash trading” and other manipulative activities for various cryptocurrency clients. These actions were designed to falsely boost the trading volume of tokens.
A crucial piece of evidence in the case is a 2019 online interview where Andriunin openly discussed creating a system for wash trading. This tactic was used to artificially inflate trading volumes, making it easier for tokens to list and sell on major crypto exchanges.
Gotbit’s fraudulent trades amounted to several million dollars, garnering tens of millions in profit from services related to cryptocurrencies like Saitama and Robo Inu. Those linked to these digital currencies are also facing charges.
