Crypto Market Manipulator Pleads Guilty in Landmark Fraud Case

Aleksei Andriunin, founder of Gotbit, pleaded guilty to U.S. charges of market manipulation in the cryptocurrency sector. As part of Operation Token Mirrors, Andriunin was extradited and charged with conspiring to commit fraud. Prosecutors recommend a two-year sentence, and Gotbit agreed to forfeit $23 million.

Aleksei Andriunin, the founder of cryptocurrency financial services firm Gotbit, has admitted to U.S. charges involving market manipulation of digital tokens. The Russian national, recently extradited from Portugal, pleaded guilty in a Boston federal court on Friday.

This landmark case, part of 'Operation Token Mirrors,' saw the FBI initiate an innovative approach by creating its own digital token to entrap fraudsters. Andriunin and his company, among 18 charged entities, conspired in wire fraud and market manipulation, leading to Gotbit's agreement to forfeit $23 million.

Active from 2018 to 2024, Andriunin's scheme involved 'wash trading' to artificially inflate token trading volumes on behalf of clients. These sham trades significantly profited Gotbit through cryptocurrencies like Saitama and Robo Inu, charges that other associates now face. Prosecutors aim for a two-year prison term for Andriunin.

(With inputs from agencies.)