The founder and CEO of market-making firm Gotbit, Alexey Andryunin, has been extradited from Portugal to the United States, where he faces charges of fraud and market manipulation in the cryptocurrency sector. The announcement was made by the US Department of Justice.
Andryunin, a Russian citizen, was arrested on October 8, 2024, in Lisbon. He spent several months in a Portuguese prison awaiting extradition and appeared before a federal court in Boston on February 25, 2025. Prosecutors accuse him of conspiracy to commit market manipulation and wire fraud. If convicted, he faces up to 20 years in prison and substantial financial penalties.
Along with Andryunin, charges have also been brought against two top executives of Gotbit—Fedor Kedrov and Kavi Jalili. US authorities suspect that the company systematically engaged in illegal schemes to artificially inflate cryptocurrency trading volumes, misleading investors and trading platforms.
Fake Trading Scheme
According to court documents, Andryunin admitted in a 2019 interview that he had developed a special software code that enabled fake cryptocurrency trades. This manipulation created the illusion of high trading volumes, increasing the chances of tokens being listed on CoinMarketCap and securing placement on major exchanges.
Prosecutors allege that between 2018 and 2024, Gotbit employees used this scheme by operating multiple accounts to conceal data manipulation on the blockchain. Investigators claim that a significant portion of the profits was transferred to Andryunin’s personal accounts, including transactions through Binance.
Additionally, Gotbit allegedly profited from “pump” services, assisting crypto startups in artificially inflating token prices and creating the appearance of high liquidity. Authorities estimate that the company earned tens of millions of dollars through these operations.
A Legal Precedent for the Crypto Industry
In October 2024, federal prosecutors in Boston filed the first-ever criminal charges against financial firms for crypto market manipulation and fake trading. Eighteen individuals and organizations, including senior executives of market-making firms and several crypto projects, have come under scrutiny.
Experts believe this case could set a legal precedent that reshapes cryptocurrency market regulations. US authorities are tightening control over market-making strategies, and similar schemes could soon be outright banned. If the charges against Andryunin and his associates are proven, it would mark the first time market makers have been held accountable for large-scale manipulations in the crypto industry.
