As a seasoned analyst with over two decades of experience in financial markets, this case of Gotbit and its founder Aleksei Andriunin is a stark reminder of the darker side of the crypto world that has long been whispered about in corners of the industry. The allegations against Andriunin, if proven, paint a picture of unscrupulous activities that have been going on for years, manipulating markets and duping unsuspecting investors.
Aleksei Andriunin, the creator of Gotbit, has been charged by the United States Department of Justice (DOJ) for alleged activities involving market manipulation and wire fraud. The FBI set up a phony cryptocurrency company with an Ethereum-based token as part of their investigation into suspected instances of market manipulation, leading to Aleksei’s detention.
As an analyst, I’ve uncovered suspicions regarding Aleksei, a Russian national, who is believed to be part of a wider scheme from 2018 to 2024. It’s claimed that Gotbit, allegedly involved, provided assistance to numerous cryptocurrency firms in questionable practices designed to artificially inflate their reported trading volumes.
The latest indictment additionally identifies Fedor Kedrov and Qawi Jalili, the heads of Gotbit, who were previously implicated in the practice of ‘wash trading’ with cryptocurrencies. As reported by the United States Department of Justice, Andriunin maintained records detailing all activities undertaken by the firm, such as contrasting the volume generated from wash trading against normal market activity.
It appears that additional research uncovers the potential listing of two popular meme tokens, Saitama and Robo Inu, within Gotbit’s user area. The entities behind these meme coins have lately been accused separately of participating in a “pump-and-dump” scam.
The company is claimed to have executed wash trades estimated at millions of dollars, causing tens of millions of fraudulent dollars to be made in revenue, where Andriunin is said to have transferred large amounts of funds to his account with Binance.
The current investigation forms a segment of a broader operation launched in October, focusing on alleged resistance. It began when federal prosecutors indicted three cryptocurrency companies – Gotbit, ZM Quant, and CLS Global – along with 15 individuals, accusing them of market manipulation fraud. This specific operation has led to four arrests, five plea bargains, and the seizure of approximately $25 million in cryptocurrency assets.
47-year-old Andriunin stands accused of orchestrating a “pump-and-dump scam,” according to Acting U.S. Attorney Joshua Levy. If found guilty, he faces potential imprisonment for up to 20 years on wire fraud charges, along with other penalties including supervised release, fines up to $250,000 or double the amount gained or lost, restitution, and forfeiture of any related assets.
Such charges however have a separate five years prison term associated with them.
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2024-11-01 15:01