In a landmark case shaking the cryptocurrency industry, Aleksei Andriunin, the founder of Gotbit Consulting LLC, has been sentenced to 8 months in prison for his role in a massive wash trading scheme. The sentencing, which took place on June 13, 2025, also includes one year of supervised release, marking a significant crackdown on market manipulation in the digital asset space.
Gotbit, a crypto market maker, was found guilty of engaging in wash trading—a fraudulent practice involving artificial inflation of trading volumes to mislead investors about a token's market activity. From 2018 to 2024, the firm manipulated markets on behalf of client cryptocurrency companies, creating a false sense of liquidity and demand.
As part of the plea deal, Andriunin and Gotbit forfeited a staggering $23 million in cryptocurrency, underscoring the scale of the fraud. U.S. regulators, including the SEC, FBI, and DOJ, have intensified efforts to curb such illicit activities, sending a strong message to the crypto industry about the consequences of market manipulation.
The case, prosecuted in the District of Massachusetts, revealed how Gotbit's actions undermined trust in cryptocurrency markets. This sentencing follows an indictment in October 2024, where Andriunin and other entities were charged with widespread fraud and conspiracy.
Industry experts warn that wash trading remains a pervasive issue in the largely unregulated crypto space, often deceiving retail investors. The Gotbit scandal has reignited calls for stricter oversight and transparency in token launches and market-making practices.
As regulators continue to clamp down, the Gotbit case serves as a cautionary tale for crypto firms. The fallout may impact investor confidence and prompt further scrutiny of market makers, potentially reshaping the landscape of digital asset trading.
Andrew Lee
