In a major crackdown on crypto fraud, US authorities have extradited Gotbit founder Aleksei Andriunin to face market manipulation and wire fraud charges.
Aleksei Andriunin, the 26-year-old Russian founder of Gotbit, has been extradited from Portugal to the United States, where he now faces charges related to market manipulation and wire fraud conspiracy. The US Attorney’s Office for the District of Massachusetts confirmed on Feb. 26 that Andriunin was arrested by Portuguese authorities on Oct. 8 and was extradited on Oct. 25.
Shortly after arriving in the US, Andriunin appeared in a federal court in Boston, where he was ordered to remain in detention until further notice.
His extradition follows an indictment by a federal grand jury on Oct. 31, which also named Gotbit directors Fedor Kedrov and Qawi Jalili.
US Authorities Used ‘Trap Token’ to Catch Gotbit
Gotbit and Andriunin were among several entities caught in a sting operation conducted by the US Federal Bureau of Investigation (FBI). The agency created a fake token, NexFundAI (NEXF), in May, designed as a “trap token” to lure market manipulators.
Gotbit allegedly provided market-making services that included software designed to facilitate wash trading, a practice used to artificially inflate trading volumes. These deceptive tactics aimed to help clients secure token listings on platforms like CoinMarketCap and major crypto exchanges.
Authorities claim that Kedrov and Jalili marketed these wash trading strategies to potential clients. In a 2019 interview, both individuals reportedly admitted to employing specific tactics to disguise wash trades on public blockchains.
Tens of Millions in Illicit Proceeds
US prosecutors allege that Gotbit earned tens of millions of dollars in proceeds from market manipulation between 2018 and 2024. A portion of these funds was allegedly transferred to Andriunin’s personal Binance account.
If convicted, Andriunin faces up to 20 years in prison for wire fraud, along with a fine of up to $250,000 or twice the gross gain or loss from the offense, plus restitution and forfeiture. The charge of conspiracy to commit market manipulation carries an additional five-year prison sentence.
The US Securities and Exchange Commission (SEC) filed a fraud lawsuit against Gotbit and Kedrov in October, signaling increased regulatory scrutiny on crypto market manipulation.
What’s Next?
Andriunin’s extradition marks a milestone in international crypto crime enforcement as regulators ramp up efforts to crack down on illicit market practices. The case sets a precedent for future legal actions against entities engaged in fraudulent market-making and price manipulation within the crypto sector.
As crypto markets mature, enforcement agencies worldwide are stepping up efforts to police fraudulent actors, sending a clear warning to market manipulators that regulatory oversight is tightening across borders.
