Key Points:
- Gotbit founder Aleksei Andriunin has been extradited to the U.S. from Portugal to face charges of market manipulation and wire fraud conspiracy.
- The charges are part of “Operation Token Mirrors,” an investigation where the FBI used its own digital token to uncover fraudulent activities.
Gotbit founder Aleksei Andriunin has been extradited to the United States to face charges of market manipulation and wire fraud conspiracy.
The 26-year-old Russian national appeared in a Boston federal court on February 25, where he pleaded not guilty to the charges.
Gotbit Founder Extradited to U.S. on Fraud Charges
The U.S. Attorney’s Office for the District of Massachusetts announced the extradition on February 26, following Andriunin’s arrest in Portugal in October 2024. The U.S. Department of Justice has ordered his detention pending further hearings.
The charges against Andriunin stem from a broader investigation into the cryptocurrency sector, known as “Operation Token Mirrors.” This operation marked the first instance of the FBI creating its own digital token to uncover fraudulent activities in the market.
In October 2024, a federal grand jury in Boston indicted the Gotbit founder, along with Gotbit directors Fedor Kedrov and Qawi Jalili, on charges of conspiracy to commit market manipulation and wire fraud. The indictment also named Gotbit as a defendant.
Potential Legal Consequences for Aleksei Andriunin and Gotbit
Prosecutors allege that from 2018 to 2024, Gotbit engaged in “wash trading,” a deceptive practice that involves creating fake trading activity to inflate the perceived market volume of cryptocurrencies.
The manipulation was reportedly conducted on behalf of several clients, including those associated with cryptocurrencies like Saitama and Robo Inu. The scheme allegedly generated millions of dollars in fraudulent transactions, with Gotbit receiving tens of millions in proceeds.
In a 2019 interview with CoinDesk, the Gotbit founder openly discussed developing software to facilitate wash trading, acknowledging the unethical nature of his business.
Last year, the U.S. Securities and Exchange Commission (SEC) also filed fraud charges against Gotbit and its employee. The SEC’s complaint alleges that the exchange manipulated the market for “Robo Inu,” a crypto asset marketed as a security to retail investors, by generating artificial trading volume through wash trading.
If convicted, Andriunin faces a maximum sentence of 25 years in prison—20 years for wire fraud and five years for conspiracy to commit market manipulation and wire fraud. The Gotbit founder could also face substantial fines, restitution, and forfeiture.
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