Aleksei Andriunin, founder of crypto hedge fund Gotbit, has been extradited from Portugal to the U.S., where he faces charges of market manipulation and wire fraud conspiracy.
Charges Against Andriunin
Aleksei Andriunin, the 26-year-old founder of Gotbit, is facing charges of wire fraud and conspiracy to manipulate cryptocurrency markets. He was arrested in Portugal in October and quickly extradited to the U.S., where he appeared in federal court in Boston. The court ordered him to remain in detention. According to the U.S. Attorney’s Office for the District of Massachusetts, Andriunin and his company were allegedly involved in schemes to artificially inflate trading volumes for several cryptocurrencies.
Involvement in Manipulation Schemes
Federal authorities claim that Gotbit, under the leadership of Andriunin from 2018 to 2024, engaged in market manipulation schemes by inflating trading volumes. This involved using software for wash trading, imitating trading volumes to secure token listings for clients on platforms like CoinMarketCap. The FBI reportedly conducted a sting operation using a 'trap token' called NexFundAI (NEXF) to catch fraudsters involved in market manipulation.
Legal Consequences
If convicted, Andriunin could face up to 20 years in prison for wire fraud and up to 5 years for conspiracy charges. Additionally, he may be fined up to $250,000 and face forfeiture of assets. The U.S. Securities and Exchange Commission has also filed a fraud lawsuit against Gotbit and its co-founder Fedor Kedrov, adding further legal challenges.
The case against Aleksei Andriunin continues to unfold, drawing attention to methods of manipulation in the cryptocurrency market. It highlights the need for regulation and scrutiny of such operations.
