Gotbit Founder Agrees to Forfeit $23M In Exchange For No Prison Time In Plea Deal

Gotbit founder, who is currently facing crypto market manipulation and wire fraud, has struck a plea deal with the U.S federal prosecutors to forfeit about $23 million in crypto.

Andryunin, a Russian national, agreed to forfeit a total of 22.9 million in stablecoin-$18.7 million worth of USDT and $4.2 million in USDC- as part of the deal, alongside other assets connected to the offense, according to a court document seen by Law360.

As part of the plea, Andriunin will plead guilty to three counts charging conspiracy to commit wire fraud and market manipulation.

Initially, Andriunin could face a potential maximum sentence of 20 years for wire fraud and up to five years for conspiracy to commit market manipulation, along with financial penalties. But following the plea agreement, the defendant might receive full immunity from imprisonment while forfeiture remains the only financial penalty.

As part of the agreement, Andryunin has also agreed not to participate in any "issuance, purchase, offer, or sale of any cryptocurrency of any cryptocurrency trading platform in the United States.

But this agreement to forfeit $23 million is only between Andriunin and the attorney, and the court retains the final discretion over the sentencing terms.

Andriunin was believed to be the mastermind behind the company Gotbit, who has orchestrated a widespread cryptocurrency market manipulation scheme. The platform was registered in Belize and was said to provide artificial trading volume for projects inside and outside of the U.S between 2018 to 2024.

Andruinin, along with two of Gotbit's directors, Fedor Kedrov and Qawi Jalili, face crypto "wash trading" charges. The DOJ charges noted that Andruinin and the firm's directors also used multiple accounts to avoid being detected for wash trades on the public blockchain.

Gotbit's clients include memecoins Saitama and Robo Inu, which have been charged separately in a pump-and-dump scheme.