Alexey Andriunin, the founder of cryptocurrency company Gotbit, has been convicted for manipulating the crypto market and sentenced to eight months in prison.
Charges of Market Manipulation
On June 13, the U.S. District Court in Massachusetts sentenced Andriunin, which also includes one year of supervised release. He was found guilty of market manipulation through illegal transactions known as wash trading. Prosecutors claim Andriunin and others created cryptocurrency firms and misled clients by faking trades.
Gotbit's Role in the Scheme
Gotbit, which Andriunin led from 2018 to 2024, helped clients simulate market activity to boost trading volume. In a 2019 interview, Andriunin explained how he developed a program to carry out wash trades. Prosecutors allege that Gotbit employees trained clients in these tactics and used multiple accounts to conceal fake trades.
Growing Global Trend of Market Manipulation
Market manipulation in the cryptocurrency sector via wash trading is becoming a global trend. Regulators worldwide are tightening measures against such actions. One of the first high-profile cases in 2018 involved the leadership of Upbit in South Korea, which used fake orders to inflate trading volume and mislead investors.
Andriunin's sentencing highlights the growing issue of market manipulation in the cryptocurrency sector and the authorities' efforts to combat such actions.
