Gotbit Founder Sentenced to 8 Months in Prison for Wash Trading Scam

In Brief:

Aleksei Andriunin, founder of Gotbit, jailed for market manipulation.

$24M in crypto forfeited; two indicted execs still at large.

Gotbit founder Aleksei Andriunin has been sentenced to eight months in prison and five years of probation after pleading guilty to market manipulation and fraud charges. The Boston federal court also ordered the forfeiture of $24 million in crypto assets. Andriunin admitted to using wash trading schemes to fake liquidity for meme coins like Saitama and Robo Inu.

Gotbit, once a go-to market maker for small cap tokens, was caught last year after the FBI used fake tokens in a sting operation. Two other executives, Fedor Kedrov and Qawi Jalili, have also been indicted but remain at large.

As part of his plea deal, Andriunin cooperated with prosecutors, detailing how the firm inflated trading volumes and misled investors. The FBI has stated it will ensure Gotbit is shut down entirely. The crypto community largely welcomed the sentencing, viewing it as a necessary step to rebuild trust in token markets and discourage similar fraudulent activity.

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