Odaily Planet Daily News Gotbit founder Aleksei Andriunin has reached a plea agreement with US authorities, agreeing to give up $23 million in crypto assets in exchange for a settlement of market manipulation charges.
Andriunin originally faced up to 20 years in prison, with charges including wire fraud and conspiracy to manipulate the market, but under the agreement, he may not face additional fines or imprisonment, and the court still reserves 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, fake trading volume was created to deceive market participants.
The US SEC also filed a lawsuit against Gotbit and its market 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 gave up $23 million in crypto assets, including stablecoins stored in Tether and Circle, held in four wallets under his personal control.
He is prohibited from engaging in any cryptocurrency-related activities for the next three years.
The maximum penalty includes a fine of $500,000 or twice the illegal gains, as well as mandatory restitution, asset confiscation and up to 5 years of probation. (decrypt)