Gotbit Founder Pleads Guilty, Forfeits $23M in Crypto Assets

Aleksei Andriunin, the founder of Gotbit, has reached a plea agreement with U.S. authorities, admitting to charges of market manipulation and wire fraud. This deal, if approved by the court, could significantly reduce his potential prison sentence from up to 20 years to a maximum of 24 months. Andriunin has agreed to forfeit approximately $23 million in crypto assets, including Tether USDt and USDC, as part of the plea deal.

Gotbit, founded by Andriunin, was initially presented as a market-making firm offering liquidity services to crypto projects. However, federal prosecutors allege that the company was involved in market manipulation, executing fake trades to artificially inflate trading volumes and mislead investors. Between 2018 and 2024, Gotbit is accused of promoting crypto projects, including those based in the U.S., by creating fake demand for their tokens. The firm is said to have manipulated token prices and created misleading market trends to attract real investors, essentially operating a pay-to-play scheme where projects could buy visibility and credibility.

The Securities and Exchange Commission (SEC) also filed a complaint against Gotbit, claiming that the firm kept detailed records of its manipulation activities, tracking "created volume" versus natural "market volume." Andriunin himself acknowledged the ethical concerns surrounding Gotbit's business model in a 2019 interview, admitting that it was "not entirely ethical." This admission was later used by the Justice Department as evidence of intentional wrongdoing.

In October 2024, federal prosecutors charged Gotbit alongside several other firms in the first-ever criminal case targeting crypto market manipulation. A total of 14 individuals and four companies were charged, with authorities seizing over $25 million in crypto. Andriunin's plea deal requires him to hand over $23 million in stablecoins from four wallets under his control. These funds, stored in USDT and USDC, were technically tied to Gotbit Consulting LLC, but court documents confirm that Andriunin was the sole operator of these wallets.

If the court approves the deal, Andriunin will serve up to 24 months in prison, alongside a fine of "$250,000 or twice the gross gain or loss from the offense." After his release, he will also be barred from participating in any crypto-related activities for three years under supervised release. This case is part of a broader effort by U.S. authorities to clean up crypto markets and enforce regulatory compliance in the digital asset space.

Andriunin's plea deal highlights the increasing scrutiny and enforcement actions by U.S. authorities against crypto market manipulation. The forfeiture of $23 million in stablecoins is a significant penalty, reflecting the severity of the market manipulation allegations. This case underscores the importance of regulatory compliance in the digital asset space and serves as a warning to other market participants about the consequences of engaging in manipulative practices.