Gotbit Founder Extradited to US Over Crypto Market Manipulation Fraud

Aleksei Andriunin, the Gotbit Founder, has been extradited from Portugal to the United States to face charges of wire fraud and market manipulation. The 26-year-old Russian national was arrested in Portugal on October 8, 2024, and was transferred to U.S. custody on February 25, 2025. He appeared in federal court in Boston, where he was ordered to remain in detention until his next hearing.

His extradition comes amid increased global efforts to prosecute financial crimes in the cryptocurrency sector. It follows the recent extradition of Terraform Labs founder Do Kwon, who was also transferred to the U.S. to face fraud charges related to the collapse of the Terra blockchain ecosystem.

Gotbit Founder Aleksei Andriunin Charges and Allegations

Aleksei Andriunin, the Gotbit Founder was indicted in October 2024 by a federal grand jury in Boston. Prosecutors allege that his company, Gotbit, engaged in widespread market manipulation between 2018 and 2024. The indictment also names Gotbit’s two directors, Fedor Kedrov and Qawi Jalili, who have not yet been taken into custody.

Authorities claim Gotbit specialized in “wash trading,” an illegal practice that creates artificial trading volume to mislead investors. The company allegedly used this method to boost the market presence of digital assets, helping them secure listings on major cryptocurrency platforms like CoinMarketCap.

Court filings, as a result, indicate that Gotbit generated tens of millions of dollars in revenue from fraudulent services. Prosecutors also state that Andriunin personally transferred millions of dollars in proceeds into his Binance account. If convicted, he faces up to 20 years in prison for wire fraud and an additional five years for conspiracy to commit market manipulation.

FBI’s Operation Token Mirrors and Crypto Fraud Crackdown

Aleksei Andriunin, the Gotbit Founder arrest and extradition are part of a broader investigation into cryptocurrency-related fraud. The FBI launched Operation Token Mirrors, a probe that led to charges against 15 individuals and three companies involved in market manipulation.

As part of the operation, FBI agents developed their own digital token to monitor fraudulent trading activity. This effort led to the discovery of multiple schemes designed to artificially inflate cryptocurrency prices. Authorities say the case against Gotbit is one of the most extensive market manipulation investigations in the crypto sector to date.

The charges against, as a result, Andriunin come at a time when law enforcement agencies worldwide are intensifying efforts to combat financial crimes in the digital asset industry. Do Kwon, the former CEO of Terraform Labs, was also recently extradited to the United States after his arrest in Montenegro. He is facing fraud charges in connection with the collapse of TerraUSD and Luna, which resulted in billions of dollars in investor losses.

Gotbit’s Alleged Role in Market Manipulation

Gotbit operated as a cryptocurrency market maker, but authorities claim its services went beyond legitimate trading activities. The company allegedly used multiple accounts to execute fake transactions, making certain cryptocurrencies appear more active and valuable than they actually were.

In addition, in a 2019 interview, Aleksei Andriunin, the Gotbit founder reportedly described how he developed software to conduct wash trades without detection. Prosecutors say these fraudulent tactics helped various cryptocurrency projects attract investors under false pretenses. Among the cryptocurrencies linked to Gotbit’s services are Saitama and Robo Inu, both of which are under investigation.

Authorities believe this type of manipulation misled investors and distorted market data, harming traders who relied on inaccurate information like the recent Libra token scam. By artificially inflating trading volumes, Gotbit allegedly enabled lesser-known cryptocurrencies to gain credibility and access major exchanges.

Aleksei Andriunin, the Gotbit founder’s extradition was the result of cooperation between the United States, Portugal, and Interpol. His case is being handled by the U.S. Attorney’s Office in Massachusetts, which has been actively prosecuting cryptocurrency-related fraud. However, at his court appearance in Boston, Andriunin did not enter a plea and his legal representatives have not commented on the case. Meanwhile, Gotbit’s directors, Kedrov and Jalili, remain at large.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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