Cryptocurrency Market Maker Founder Indicted

By Kanishka Singh

WASHINGTON (Reuters) – The founder of cryptocurrency market maker Gotbit has been indicted for his alleged involvement in a broad conspiracy to manipulate cryptocurrency markets for client companies, the U.S. Justice Department announced on Thursday.

Aleksei Andriunin, 26, was charged with wire fraud and conspiracy to commit market manipulation in a superseding indictment, according to a Justice Department statement.

From 2018 to 2024, while serving as CEO, Andriunin's firm allegedly provided market manipulation services that created artificial trading volumes for various cryptocurrency firms, including some based in the United States.

The superseding indictment also includes charges against Gotbit and two of its directors, Fedor Kedrov and Qawi Jalili, who were previously indicted on October 9.

Efforts to contact Gotbit, Andriunin, Kedrov, and Jalili went unanswered.

If convicted of wire fraud, Andriunin could face a maximum sentence of 20 years in prison. For conspiracy to commit market manipulation and wire fraud, he faces up to five years in prison, the Justice Department stated.

On October 9, federal prosecutors charged crypto firms Gotbit, ZM Quant, CLS Global, and their leaders and employees, resulting in four arrests, plea agreements from five individuals, and the seizure of over $25 million in cryptocurrency.