Odaily News Gotbit founder Aleksei Andriunin has reached a plea deal with U.S. authorities, agreeing to give up $23 million in crypto assets in exchange for settling market manipulation charges.
Andriunin originally faced up to 20 years in prison on charges including wire fraud and conspiracy to manipulate markets, but under the agreement he may not face additional fines or jail time, and the court retains the final sentencing decision.
Gotbit Market Manipulation Details
Between 2018 and 2024, Gotbit provided token price manipulation services to multiple crypto projects, including US companies.
Through large-scale wash trading, false trading volume is created to deceive market participants.
The US SEC also filed a lawsuit against Gotbit and its marketing director Fedor Kedrov, accusing them of systematically recording and comparing artificially created trading volume with natural market trading volume.
Key Terms of the Plea Agreement
Andriunin is giving up $23 million in crypto assets, including stablecoins held in four wallets under his personal control, including those deposited in Tether and Circle.
They are prohibited from participating in any cryptocurrency-related activities in the next three years.
The maximum penalty includes a $500,000 fine or twice the illegal gains, mandatory restitution, asset forfeiture, and up to five years of probation. (decrypt)