Gotbit Founder Extradited to U.S. on Market Manipulation and Fraud Charges

Background of the Case

Gotbit, a market-making firm founded by Andriunin, allegedly engaged in wash trading—a deceptive practice where fake transactions are generated to create the illusion of high trading volumes. This manipulation misled investors into believing that certain digital assets were more liquid and in demand than they actually were.

In a 2019 interview, Andriunin openly discussed Gotbit’s role in artificially inflating token trading volumes to secure listings on major platforms like CoinMarketCap. His firm reportedly used software that executed sham trades to make tokens appear more popular. This process, while controversial, helped some projects gain traction in the crypto market.

Legal Charges and Extradition

The U.S. Department of Justice (DOJ) confirmed that Andriunin was arrested in Portugal on October 8, 2024, and extradited to the U.S. on February 25, 2025. He appeared in a Boston federal court the following day, where he was ordered to remain in detention.

The indictment, filed by a federal grand jury in Boston, accuses Andriunin of wire fraud and conspiracy to commit market manipulation. If convicted, he faces up to 20 years in prison for wire fraud and five years for conspiracy, along with substantial financial penalties.

The DOJ also charged two other Gotbit executives, Fedor Kedrov and Qawi Jalili, for their alleged roles in the fraudulent activities. Prosecutors claim Gotbit facilitated millions of dollars in sham trades on behalf of clients, generating tens of millions in illegal profits—some of which were reportedly transferred into Andriunin’s Binance account.

Operation Token Mirrors: FBI’s Undercover Investigation

Andriunin’s case is part of the FBI’s broader crackdown on crypto fraud under Operation Token Mirrors. In this sting operation, the FBI created a fake cryptocurrency project called "NexFundAI" to identify bad actors involved in market manipulation.

This operation led to 15 individuals and three companies, including Gotbit, being charged with fraudulent activities. It signals a more aggressive enforcement strategy by U.S. regulators to crack down on deceptive trading practices.

Impact on the Crypto Industry

Andriunin’s extradition and prosecution mark a significant step in regulating the crypto industry. As digital assets gain mainstream acceptance, authorities are intensifying efforts to ensure transparency and protect investors.

This case serves as a warning to crypto firms engaging in manipulation—regulators are now deploying sophisticated methods to detect and penalize fraudulent actors. The outcome of Andriunin’s trial could set legal precedents for future cases involving crypto market manipulation.

As regulatory scrutiny increases, crypto projects will need to adopt higher ethical standards and comply with evolving legal frameworks to operate safely within the industry.