The US Department of Justice (DOJ) is charging the founder and CEO of crypto company Gotbit with wire fraud and conspiracy to commit market manipulation and wire fraud.
In a new press release, the U.S. Attorney’s Office for the District of Massachusetts alleges that 26-year-old Russian citizen Aleksei Andriunin and two Gotbit executives offered and promoted crypto market manipulation services between 2018 and 2024.
According to authorities, Gotbit – known at the time as a market maker – engaged in market manipulation to artificially increase trading volumes for crypto projects, including companies in the US, although no specific entities were named.
Andriunin and his cohorts Fedor Kedrov and Qawi Jalili allegedly “trade” crypto assets using computer code to inflate their trading volume and get them listed on websites such as CoinMarketCap, which tracks trending cryptocurrencies, and larger crypto exchange platforms.
Gotbit allegedly marketed its illegal tactics to potential customers and traded the crypto assets on their behalf. Prosecutors say Gotbit received tens of millions of dollars for his fraudulent services.
According to the press release, Andriunin is believed to have moved a large portion of Gotbit’s proceeds to his personal Binance account.
Wash trading occurs when an entity simultaneously buys and sells an asset, often at high prices, giving the impression of increased demand and market activity around it.
If convicted of the charges, Andriunin faces up to 20 years in prison for bank fraud, five years in prison for conspiracy to commit market manipulation and bank fraud, as well as possible fines, restitution and forfeiture.
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