Alexey Andryunin, the founder of the crypto market-making firm Gotbit, has admitted guilt in a landmark fraud case brought by the U.S. Department of Justice. The Russian entrepreneur was extradited from Portugal to the U.S. in February 2025 after being arrested in late 2024. He now faces serious consequences for his role in manipulating crypto markets—most notably through wash trading practices.
$23M Forfeited, Guilty Plea Secured
As part of his plea deal, Andryunin agreed to forfeit approximately $22.89 million in cryptocurrency holdings. This includes $18.7 million in Tether (USDT) and $4.2 million in USD Coin (USDC). These funds will be seized by U.S. authorities and do not cover additional penalties, fines, or restitution, which may be determined during sentencing.
He faces a potential prison sentence of up to 45 years, but prosecutors are recommending a significantly reduced term of two years followed by probation, citing his cooperation and the financial settlement.
FBI’s Decoy Token: NexFundAI
A key piece of evidence came from an FBI sting operation. The bureau created a fake token, NexFundAI, and worked with Gotbit under the pretense of generating liquidity. Within days, suspicious trading volumes spiked and then crashed, confirming the suspected wash trading activities. This operation mirrored techniques Andryunin himself had admitted to in a 2019 interview, where he discussed using custom-built software to inflate token volumes artificially.
Regulatory Message to the Crypto Industry
This case sends a clear signal: regulatory bodies are intensifying scrutiny on deceptive trading practices in the crypto space. For investors, it’s a reminder to exercise due diligence and remain skeptical of projects with sudden, unnatural volume surges.
Should Traders Be Worried?
Although Gotbit’s case is specific, it highlights the risks lurking beneath the surface of smaller tokens—particularly those heavily reliant on artificial volume or social hype. Traders should be cautious when dealing with unfamiliar tokens, especially those showing explosive volume with no organic activity behind them.
This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research before making any trading decisions.
