Aleksei Andriunin, CEO of Gotbit Consulting LLC, has been sentenced to 8 months in prison following his conviction for orchestrating a cryptocurrency market manipulation scheme.
The U.S. Department of Justice secured the sentence and a $23 million forfeiture order against Andriunin after he pleaded guilty to wire fraud and market manipulation. Prosecutors detailed how Gotbit artificially inflated trading volumes and prices of specific altcoins.
Federal authorities emphasized that Gotbit’s actions misled investors by creating an illusion of genuine market demand for cryptocurrencies that otherwise had little organic interest. This fraudulent activity distorted the market and harmed investors relying on accurate trading information.
The case is indicative of increasing regulatory focus and enforcement actions targeting market makers, particularly concerning manipulation in lower-liquidity altcoin markets where such schemes pose significant risks.
The forfeiture of $23 million represents the significant illicit gains derived from the scheme and serves as a deterrent to similar fraudulent activities. This action signals broader efforts to enhance investor protection and market integrity within the cryptocurrency sector.