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The U.S. Department of Justice (DOJ) has indicted Aleksei Andriunin, founder of crypto market-making firm Gotbit, for wire fraud and conspiracy to commit market manipulation.
What's the scoop?
- Charges Explained: Andriunin faces up to 20 years in prison if convicted of wire fraud, alongside additional charges for market manipulation and conspiracy. Co-founders Fedor Kedrov and Qawi Jalili were also implicated.
- Alleged Manipulation: Prosecutors claim that Gotbit artificially inflated trading volumes of various cryptocurrencies from 2018 to 2024 through wash trading tactics to secure listings on CoinMarketCap and exchanges.
- High-Profit Scheme: The DOJ alleges that Andriunin made “tens of millions” by providing wash-trading services, pocketing the proceeds in a personal
Binance account. - Wider Investigation: The DOJ has recently cracked down on market manipulation schemes, arresting multiple individuals and seizing over $25 million in crypto. This follows broader charges against memecoins like Robo Inu and Saitama, which allegedly hired Gotbit’s services.
Bankless Take:
The Gotbit case signals a stark warning to crypto market makers: regulators are treating crypto market manipulation with the same rigor as traditional financial crimes. This DOJ-led crackdown, particularly on “pump and dump” and wash trading schemes, could accelerate industry demands for more transparency and accountability in crypto.
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