Aleksei Andriunin, the founder of crypto market maker Goitbit, has been sentenced to eight months in prison and one year of supervised release by the Federal Court of Massachusetts. The ruling comes after Andriunin admitted to running a multi-million dollar market manipulation scheme that lasted for years, raising serious concerns about investors trust and integrity in the crypto space.
According to the ruling, Gotbit itself was handed a five year probation sentence and ordered to immediately cease all operations. The company, once a major player in the crypto trading world, must also forfeit $23 million in cryptocurrency as part of a plea agreement reached with the U.S. Department of Justice in March 2025.
Details of the Gotbit Scheme
Federal prosecutors detailed how Andriunin 26, masterminded an extensive “wash trading” operation through Gotbit between 2018 and 2024. Wash trading is when fake traders are made to make a token look more popular than it really is. This tricks people into thinking there’s strong interest, which can drive up the token’s value unfairly.
Andriunin used this tactic to help certain crypto projects look more successful, attracting investors and listing on exchanges. In a unique sting called “Operation Token Mirrors,” the FBI even created a fake token to catch those involved in this type of fraud.
He was caught in Portugal in October 2024, sent to the U.S., and later admitted to wire fraud and market manipulation.
Legal Proceedings and Industry Impact
The plea agreement included the forfeiture of $23 million and paved the way for today’s sentencing, which also took into account the time Andriunin had already served in custody. In addition to his prison term, Andriunin now faces possible deportation proceedings.
This case is one of several in a larger federal push to crack down on fraud and manipulation in the crypto industry. So far, authorities have charged 15 people and three companies tied to similar misconduct, showing a stronger focus on cleaning up the space.
Gotbit, once seen as a stop market maker with over 200 employees around the world, has now become an example of what can happen when firms cross legal lines. U.S. regulators are stepping up enforcement and using more advanced tools to protect investors and make sure fair play in digital asset markets.
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