BOSTON, March 21 (Reuters) – Aleksei Andriunin, the founder of Gotbit, a cryptocurrency financial services firm, pleaded guilty on Friday to U.S. charges related to a scheme to manipulate the digital token market for client companies. Gotbit, which functioned as a “market maker,” also entered a guilty plea.
Andriunin, a 26-year-old Russian national, and his company admitted in federal court in Boston to conspiracy to commit market manipulation and wire fraud. The pleas followed Andriunin’s extradition from Portugal, where he resided when he was arrested last October amidst an investigation into the crypto sector.
The case was part of “Operation Token Mirrors,” an investigation that involved the FBI creating its own digital token to identify crypto market fraudsters. Fifteen individuals and three firms were targeted in the operation.
According to plea agreements, prosecutors are recommending a prison sentence of up to two years for Andriunin. Sentencing is scheduled for June 16. Gotbit agreed to forfeit approximately $23 million in cryptocurrency.
Prosecutors stated that from 2018 to 2024, Gotbit engaged in “wash trading,” a form of sham trading, and market manipulation on behalf of several cryptocurrency clients. The goal was to artificially inflate trading volume for their tokens. An online interview from 2019 was cited, where Andriunin described developing code to wash trade cryptocurrencies to boost trading volume for listings on larger exchanges.
Gotbit’s wash trades totaled millions of dollars. The company received tens of millions for its services. Cryptocurrencies involved included Saitama and Robo Inu. Individuals associated with those cryptocurrencies have also been charged.
(Reporting by Nate Raymond in Boston; Editing by Bill Berkrot)
