Gotbit Founder Agrees to Rp374 Billion Fine on Crypto Market Manipulation Charges

Jakarta, Pintu News – Gotbit founder Aleksei Andriunin has agreed to a plea deal with US authorities over allegations of digital asset market manipulation. As part of the deal, Andriunin will surrender crypto assets worth $23 million, equivalent to around Rp374.9 billion (referring to the exchange rate of 1 USD = Rp16,300).

Andriunin, who is 26 years old, was allegedly involved in a Gotbit operation that caused financial losses to investors by fraudulently inflating crypto prices. Prosecutors said that the company’s activities caused crypto buyers to pay manipulated prices. He was extradited to the US in February 2025 after being arrested in Portugal four months earlier.

Market Manipulation and “Wash Trading” Cases by Several Companies

The US Department of Justice (DOJ) also announced charges against a total of 14 individuals and four other crypto companies, including Gotbit, ZM Quant, CLS Global, and MyTrade. They are all accused of engaging in market manipulation and the practice of “wash trading”, which is creating fake trading activity to make it look like there is huge demand.

During the operation, authorities even created fake digital tokens to trap the perpetrators. The US government seized more than $25 million in digital assets from the defendants. This is the first case where the authorities used the entrapment approach in the crypto industry.

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Potential Penalties and Deal Impact

Aleksei Andriunin previously faced a maximum sentence of 20 years in prison on charges of wire fraud and market manipulation conspiracy. However, with this deal, he is unlikely to serve any jail time and will not be subject to additional fines beyond the asset surrender.

However, the final decision remains with the court. Federal prosecutors state that the maximum penalties for this offense include fines of up to $500,000 (Rp8.15 billion) or double the profits earned, mandatory restitution, as well as restrictions on financial activity for five years.

Operation Gotbit and the Crypto Industry’s Response

In the court documents, it is stated that Gotbit has systematically run a market manipulation business between 2018 and 2024. The company offered services to various crypto projects, including those based in the US, to artificially inflate token prices.

One of the main techniques is to conduct “wash trades” which fraudulently create the impression that there is increased trading activity. This is used to attract new investors who do not realize that the demand has been manipulated.

Reactions from Token Projects and US Regulators

After the charges were announced, a number of meme coin and token projects that previously worked with Gotbit immediately issued statements distancing themselves from the company. They stated that they had terminated all cooperative relationships and were no longer using services from Gotbit.

On the other hand, the US Securities and Exchange Commission (SEC) also filed charges against Gotbit and the company’s marketing director, Fedor Kedrov. The SEC revealed that the company kept data comparing artificially generated trading volumes with natural market volumes, and promoted their services as a way to hide manipulative activity from public scrutiny.

Conclusion

The Gotbit case highlights how market manipulation in the cryptocurrency sector remains a major challenge for regulators. This legal settlement serves as a warning to industry players that transparency and ethics are important foundations in building public trust in digital assets. This legal move also confirms the commitment of international regulators in protecting investors from fraudulent practices in the ever-evolving crypto market.

Also Read: This is Arhur Hayes’ BTC Price Prediction Based on April 2025 Fed Rate!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Mat Di Salvo / Decrypt. Gotbit Founder Forfeits $23M in Crypto in Market Manipulation Plea Deal. Accessed March 21, 2025.
• Featured Image: freepik.com