Gotbit Founder Sentenced in Wash Trading Case as U.S. Intensifies Crypto Market Crackdown

In a decisive move against market manipulation in the cryptocurrency sector, a U.S. federal judge has sentenced Gotbit Consulting LLC and its founder, Aleksei Andriunin, for orchestrating millions of dollars in wash trading schemes. This marks the latest milestone in the Department of Justice’s ongoing crackdown on fraudulent trading activities in digital asset markets.

Federal Court Orders Prison Term and Multi-Million Dollar Forfeiture

On Friday, the Massachusetts U.S. District Court handed down its verdict: Gotbit Consulting LLC must surrender $23 million in seized crypto assets, and its founder, Aleksei Andriunin, will serve eight months in prison followed by a year of supervised release. The sentencing came after both parties admitted to manipulating trading volumes and inflating the visibility of numerous client tokens, including well-known meme coins.

How Gotbit Manipulated Markets—and Why It Matters

Between 2018 and 2024, Gotbit specialized in artificially boosting trading activity and prices for a wide array of digital currencies. The firm developed proprietary software designed to execute rapid trades between multiple controlled accounts, creating the illusion of genuine market demand. These inflated volumes often helped client tokens secure listings on prominent cryptocurrency data platforms and exchanges such as CoinMarketCap, with notable tokens Robo Inu and Saitama included among their roster. Investors, misled by these manufactured metrics, were at risk of purchasing overvalued assets, though the exact financial impact could not be completely quantified for the court.

Key Stats & Figures

• Total Forfeiture: $23 million in cryptocurrency ordered seized from Gotbit LLC
• Sentence for Founder: Aleksei Andriunin to serve 8 months in prison and 1 year supervised release
• Wash Trading Period: 2018 to 2024, servicing multiple U.S. and international crypto clients
• Assets Involved: Over $9 million USDT and $4.2 million USDC from one wallet, plus two wallets containing $5 million and $4.7 million in USDT

Context: Expanding DOJ Action Against Crypto Fraud

This conviction is part of a broader federal initiative targeting fraud in the burgeoning digital asset economy. Gotbit’s charges were brought in October 2024, when law enforcement indicted 14 individuals and four companies—including ZM Quant, CLS Global, and MyTrade—on allegations of market manipulation and wire fraud. The Department of Justice has singled out wash trading, the act of buying and selling the same assets to create fake trading volume, as a critical focus for enforcement. Gotbit is now the third crypto market maker convicted under this initiative, following previous actions against MyTrade’s founder and CLS Global FZC LLC.

Conclusion: What This Means for the Market

The sentencing of Gotbit and its founder sends a powerful message to the crypto industry: market manipulation and fraudulent volume boosting are firmly in the DOJ’s crosshairs. As regulatory scrutiny tightens, both projects and market makers will need to adopt stringent compliance measures to avoid similar consequences. The case underscores the increasing maturity of enforcement efforts as the U.S. government seeks to establish credibility and trust within the evolving digital asset marketplace.