The U.S. Department of Justice has announced the extradition of Aleksei Andriunin, founder of the cryptocurrency firm Gotbit, to the United States to face charges of fraud and market manipulation. This development was disclosed in a press release dated February 26.
According to the U.S. Attorney’s Office for the District of Massachusetts, Andriunin, a 26-year-old Russian national residing in Portugal, was apprehended on October 8, 2024. He was extradited to the United States on February 25, 2025, and subsequently appeared in federal court in Boston. During this appearance, he was ordered to remain in detention pending a future hearing. The indictment also includes Gotbit’s two directors, Fedor Kedrov and Qawi Jalili, who are facing charges of wire fraud and conspiracy to commit market manipulation.
Prosecutors allege that from 2018 to 2024, under Andriunin's leadership, Gotbit engaged in "wash trading," a deceptive practice aimed at artificially inflating cryptocurrency trading volumes. They claim that the firm's fraudulent activities misled investors and facilitated certain tokens' listings on major exchanges. The scheme reportedly involved millions of dollars in sham trades that generated tens of millions in illicit profits.
A survey conducted by AMBCrypto in August 2024 revealed that 78% of cryptocurrency investors view Binance and Coinbase as the most secure trading platforms. This report underscores the trust these exchanges have garnered within the crypto community amid frequent scrutiny over security vulnerabilities. It reflects investor confidence in their regulatory compliance and security measures.
Andriunin led Gotbit as a cryptocurrency market-making service provider specializing allegedly in fraudulent market manipulation techniques such as wash trading to boost trading volumes for clients artificially. In a 2019 interview, he described coding an automated system for executing such trades, which he claimed aided in securing listings on platforms like CoinMarketCap and larger exchanges.
The U.S. Attorney’s Office for the District of Massachusetts is tasked with prosecuting federal offenses within the state, including cybercrime, financial fraud, and securities violations. In recent years, it has intensified efforts against cryptocurrency-related frauds involving market manipulation and deceptive investment practices as part of broader enforcement initiatives.
