Aleksei Andriunin, the founder of market-making firm Gotbit, has agreed to forfeit $23 million in cryptocurrency as part of a plea deal with U.S. authorities. If the agreement is approved, Andriunin could avoid additional fines and a lengthy prison sentence, receiving up to 24 months in prison, followed by 36 months of supervised release.
Plea Agreement Details
Andriunin and the U.S. Attorney for the District of Massachusetts have reached a deal that requires him to plead guilty to one count of market manipulation and two counts of wire fraud. Originally, he faced over 20 years in prison, but under the plea agreement, his sentence would be significantly reduced.
During his three-year supervised release, Andriunin will not be allowed to engage in any cryptocurrency-related activities.
Forfeiture of Crypto Assets
As part of the deal, Andriunin will forfeit all cryptocurrency assets derived from or directly linked to his charges, including:
- $14 million in USDT (Tether) stored in two crypto wallets.
- $9 million in USDC (USD Coin) stored in two additional wallets.
Court documents state that while these assets are legally tied to Gotbit Consulting LLC, Andriunin controlled the wallets on behalf of the firm. In lieu of criminal forfeiture, Gotbit has consented to a civil forfeiture of these assets.
Legal Implications and Penalties
Federal prosecutors estimated that Andriunin’s charges could have led to fines of $500,000 or twice the amount gained or lost from the offenses. In addition to forfeiture, he could face up to five years of probation and is required to fully assist authorities in the asset transfer process.
“Defendant agrees to assist fully in the forfeiture of the above assets. Defendant agrees to promptly take all steps necessary to pass clear title to the above assets to the United States.”
— Lead B. Foley, U.S. Attorney’s Office
Background on Market Manipulation Charges
Andriunin was accused in November 2024 of orchestrating a long-running wash trading scheme—a form of market manipulation that artificially inflates trading volumes through fake trades. Prosecutors allege these illegal activities occurred between 2018 and 2024, while Andriunin served as Gotbit’s CEO.
Gotbit is one of four companies charged in the first-ever U.S. criminal prosecution targeting market manipulation in crypto. The other firms named in the case are:
- ZM Quant
- CLS Global
- MyTrade
What’s Next?
With the plea deal awaiting court approval, Andriunin’s agreement to cooperate fully with forfeiture proceedings signals an effort to mitigate sentencing and avoid further legal repercussions. His conviction sets a precedent in the U.S. government’s increasing crackdown on fraudulent trading practices in crypto markets.
