Russian crypto exchange founder Aleksei Andriunin has been extradited to the U.S. to face wire fraud and market manipulation charges. Prosecutors allege he used wash trading to inflate cryptocurrency volumes. If convicted, he faces up to 20 years in prison.
Russian Crypto Founder Faces Fraud Charges in U.S.
Aleksei Andriunin, the 26-year-old founder of cryptocurrency exchange Gotbit, has been extradited to the United States to stand trial for wire fraud and conspiracy to commit market manipulation. Andriunin was arrested in Portugal on October 8, 2023, and made his initial court appearance in Boston on February 25, 2024, according to the U.S. Attorney’s Office for the District of Massachusetts.
A federal grand jury indicted Andriunin, along with Gotbit and its directors, Fedor Kedrov and Qawi Jalili, accusing them of offering fraudulent market manipulation services to cryptocurrency firms, including those in the U.S.
Allegations of Crypto Wash Trading and Fraud
Authorities allege that Andriunin developed software to execute “wash trades” a practice that artificially inflates the trading volume of cryptocurrencies listed on CoinMarketCap. Prosecutors claim Gotbit employees marketed these services to clients and used multiple accounts to evade detection on the blockchain.
According to the indictment, Gotbit facilitated millions of dollars in fraudulent trades, earning tens of millions in proceeds. Authorities further allege that Andriunin transferred millions of dollars of these profits into his personal Binance account.
Potential Prison Time and Financial Penalties
If convicted, Andriunin faces up to 20 years in prison for wire fraud, along with fines reaching $250,000 or twice the amount of financial gains from the offense. He could also face five additional years for conspiracy to commit market manipulation and up to three years of supervised release.
The case underscores the risks of fraudulent crypto trading practices. Investors and firms should remain vigilant and comply with regulatory standards to avoid legal consequences.
