Gotbit CEO Aleksei Andriunin Sentenced for Crypto Fraud – Coincu

Aleksei Andriunin, founder of Gotbit, received an eight-month prison sentence from the Federal Court of Massachusetts for crypto market manipulation.

The case underscores regulatory vigilance against fraudulent trading practices.

Sentencing: Eight Months Prison and Five-Year Probation

Aleksei Andriunin, CEO of Gotbit, was sentenced to eight months in prison and a year of supervised release for manipulating crypto markets. His firm received a five-year probation period. Gotbit, a prominent market maker, inflated trading volumes of crypto assets since 2018 to gain listings on exchanges using fraudulent trading software. Reports indicate this manipulation involved tens of millions of dollars.

The sentencing, conducted by the Federal Court in Massachusetts, reflects a significant step by U.S. authorities to curb crypto fraud. Gotbit’s operations will cease during the probation period, marking a pause in their market activities. The U.S. Department of Justice noted that such practices undermined market integrity and misled investors. Community reactions have been relatively muted, with no statements from top industry figures or exchanges reported as of the latest update.

“Gotbit’s founder Aleksei Andriunin repeatedly used fraudulent trading practices to inflate the perceived popularity and liquidity of various cryptocurrencies, misleading investors and undermining market integrity. Today’s sentencing sends a clear message that such market manipulation will not be tolerated in the U.S. financial markets.” — U.S. Attorney’s Office, District of Massachusetts

Implications for Altcoins and Regulatory Measures

Did you know? Wash trading and market manipulation charges have previously led to severe penalties but rarely affected major cryptocurrencies like BTC or ETH. The focus remains on emerging altcoins struggling to maintain legitimacy post-exposure.

CoinMarketCap data reveals Bitcoin (BTC) traded at $106,018.90, with a market cap of $2.11 trillion as of June 13, 2025. BTC’s price showed slight fluctuations, including a 1.54% rise over seven days. Despite events like Gotbit’s sentencing, larger cryptocurrencies maintain stability, signaling hardened maturity against market disruptions.

The Coincu research team suggests that Gotbit’s case could enforce stricter regulatory measures on low-cap asset trades, promoting transparency. Such precedents highlight the need for robust surveillance systems to prevent market manipulation and build investor trust in emerging digital assets.