Aleksei Andriunin Faces Wire Fraud and Market Manipulation Allegations
Aleksei Andriunin, the founder and CEO of cryptocurrency financial services firm Gotbit, has been extradited from Portugal to the U.S. to face charges of market manipulation and wire fraud. The U.S. Department of Justice announced that Andriunin, a 26-year-old Russian national, appeared in a Boston federal court on Wednesday, where he pleaded not guilty.
Andriunin is accused of engaging in fraudulent practices to manipulate the market for digital tokens on behalf of his clients. His lawyer, Roger Burlingame of Dechert law firm, declined to comment on the case.
Operation Token Mirrors Uncovers Widespread Crypto Fraud
Andriunin was among 15 individuals and three firms charged in October following a U.S. government investigation known as “Operation Token Mirrors.” This probe, led by the FBI, was the first to use a government-created digital token to track fraudulent activity in the crypto sector.
According to prosecutors, Gotbit engaged in “wash trading” from 2018 to 2024, a deceptive practice where fake transactions are created to give the illusion of higher trading volume. This manipulation helped cryptocurrencies gain visibility and secure listings on major exchanges.
A 2019 interview cited in the indictment revealed that Andriunin openly discussed using a custom-coded system to inflate token trading volumes artificially. Authorities estimate that Gotbit facilitated millions of dollars in fraudulent trades and earned tens of millions in fees from projects like Saitama and Robo Inu, whose affiliates have also been charged.
Legal Consequences and Ongoing Investigations
Andriunin was arrested in Portugal in October when the charges were first announced. While he has now been extradited, Gotbit and two of its employees in Russia are also facing charges but have yet to appear in U.S. court.
The case highlights increased scrutiny of crypto market manipulation, as authorities work to crack down on fraudulent schemes that mislead investors and undermine trust in digital assets. If convicted, Andriunin could face severe penalties, reinforcing regulators’ efforts to bring transparency to the rapidly evolving crypto market.
With inputs from Reuters
