US Seizes $23M in Crypto from Gotbit CEO Andryunin
Gotbit CEO Alexey Andryunin admitted guilt in a lawsuit for fraud and market manipulation. The US will confiscate $23M in crypto.
A Russian man who founded a cryptocurrency market maker has reached a settlement with the US Department of Justice and admitted his guilt to fraud.
The founder of cryptocurrency market maker Gotbit, Alexey Andryunin, has agreed to a plea deal with the US Department of Justice on charges of fraud and manipulation of the cryptocurrency market. As part of the deal, he will be forfeited around $23 million in cryptocurrency.
Gotbit founder Aleksei Andriunin struck a plea deal with U.S. prosecutors that will see him spend no more than 2 years behind bars for wire fraud and market manipulation. @cheyenneligon reportshttps://t.co/NnYVZY4OGc
Andryunin was arrested on 6 October 2024 in Portugal and handed over to US authorities on 25 February 2025. He was charged with fraud and market manipulation. According to the US Department of Justice, he, along with other defendants in the criminal case, executed fictitious transactions (wash trading) to artificially increase trading volumes of memecoins and little-known tokens. Andryunin declined consular assistance from Russia, sending a written document to the embassy asking it not to interfere in his case.
In 2019, in an interview with CoinDesk, Andryunin stated that he had developed a special code for wash trading, which Gotbit used for its clients. The US Department of Justice cited these statements in the indictment, considering them a direct confession of manipulation.
The FBI operation and the NexFundAI case
To prove the wash trading, the FBI created its own token, NexFundAI, and registered a company with the same name, signing an agreement with Gotbit to 'create liquidity'. NexFundAI's trading volume rose sharply only to collapse just as quickly, confirming the use of wash trading.
Court settlement: confiscated $22.89 million in crypto
As part of the court settlement, Andryunin will have cryptocurrencies totalling $22.89 million confiscated. According to the documents, of this sum:
$18.7 million is in USDT (Tether)
$4.2 million is in USDC (USD Coin)
The documents specify that these funds do not include fines, penalties, fees, detention charges or other debts owed to the United States.
Andryunin also agreed to the possibility of further seizures in the case, which could involve vehicles, money or other personal property, waiving any objections or claims.
The Russian pleaded guilty to conspiracy to commit wire fraud and market manipulation, as well as two additional counts of wire fraud. For the first count he faces up to five years in prison, and for the other two up to 20 years each. The charges also include fines, restitution, and asset forfeiture, as well as three years probation after prison.
After the guilty plea, the prosecutor agreed to recommend a maximum sentence of two years in prison and three years probation. As for the confiscation of assets, the prosecutor will not ask for further fines, but will oblige Andryunin to repay damages, the amount of which will be determined at the time of sentencing.
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A Russian man who founded a cryptocurrency market maker has reached a settlement with the US Department of Justice and admitted his guilt to fraud.
The founder of cryptocurrency market maker Gotbit, Alexey Andryunin, has agreed to a plea deal with the US Department of Justice on charges of fraud and manipulation of the cryptocurrency market. As part of the deal, he will be forfeited around $23 million in cryptocurrency.
Source: CoinDesk
Andryunin was arrested on 6 October 2024 in Portugal and handed over to US authorities on 25 February 2025. He was charged with fraud and market manipulation. According to the US Department of Justice, he, along with other defendants in the criminal case, executed fictitious transactions (wash trading) to artificially increase trading volumes of memecoins and little-known tokens. Andryunin declined consular assistance from Russia, sending a written document to the embassy asking it not to interfere in his case.
In 2019, in an interview with CoinDesk, Andryunin stated that he had developed a special code for wash trading, which Gotbit used for its clients. The US Department of Justice cited these statements in the indictment, considering them a direct confession of manipulation.
The FBI operation and the NexFundAI case
To prove the wash trading, the FBI created its own token, NexFundAI, and registered a company with the same name, signing an agreement with Gotbit to 'create liquidity'. NexFundAI's trading volume rose sharply only to collapse just as quickly, confirming the use of wash trading.
Court settlement: confiscated $22.89 million in crypto
As part of the court settlement, Andryunin will have cryptocurrencies totalling $22.89 million confiscated. According to the documents, of this sum:
The documents specify that these funds do not include fines, penalties, fees, detention charges or other debts owed to the United States.
Andryunin also agreed to the possibility of further seizures in the case, which could involve vehicles, money or other personal property, waiving any objections or claims.
The Russian pleaded guilty to conspiracy to commit wire fraud and market manipulation, as well as two additional counts of wire fraud. For the first count he faces up to five years in prison, and for the other two up to 20 years each. The charges also include fines, restitution, and asset forfeiture, as well as three years probation after prison.
After the guilty plea, the prosecutor agreed to recommend a maximum sentence of two years in prison and three years probation. As for the confiscation of assets, the prosecutor will not ask for further fines, but will oblige Andryunin to repay damages, the amount of which will be determined at the time of sentencing.
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