Aleksei Andriunin, the founder and CEO of cryptocurrency market-making firm Gotbit, has been extradited from Portugal to the United States to face market manipulation and fraud charges. Andriunin, a 26-year-old Russian national, appeared in a Boston federal court on Wednesday, where he pleaded not guilty to wire fraud charges and conspiracy to commit market manipulation and wire fraud.
Andriunin was among 15 individuals and three companies charged in October as part of “Operation Token Mirrors,” an investigation led by the Federal Bureau of Investigation (FBI) aimed at exposing fraudulent activities in the cryptocurrency market.
The case marked a significant step in law enforcement’s efforts to regulate digital asset markets, with the FBI reportedly creating its own digital token to track fraudulent trading practices.
According to prosecutors, Gotbit engaged in “wash trading” and other manipulative practices from 2018 to 2024 to artificially inflate trading volumes for client tokens.
Wash trading involves executing buy and sell orders simultaneously to create the illusion of high demand, misleading investors and exchanges. The indictment referenced a 2019 interview in which Andriunin acknowledged developing software to facilitate such trades, allowing tokens to gain listings on larger cryptocurrency exchanges.
Authorities allege that Gotbit conducted millions of dollars in sham trades and earned tens of millions in fees from its services. Among the cryptocurrencies reportedly linked to the scheme are Saitama and Robo Inu, with individuals associated with these tokens also facing charges.
Andriunin was arrested in Portugal in October, shortly after the charges were announced. While he has now been extradited, two Gotbit employees based in Russia have yet to appear in court to face related charges.
His legal representative, Roger Burlingame of Dechert LLP, declined to comment on the case. The Department of Justice has not disclosed further details on the trial timeline or potential sentencing if convicted.
Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.
