DOJ Charges Gotbit CEO in Alleged Wash Trading Scheme Manipulating Meme-Based Cryptocurrencies

The Department of Justice has indicted Aleksei Andriunin, CEO of Gotbit, accusing him of a large-scale scheme to manipulate cryptocurrency markets through wash trading and deceive investors. Andriunin, a Russian citizen living in Portugal, was arrested on October 16 on charges of wire fraud and conspiracy to commit market manipulation.

According to the DOJ, Andriunin and Gotbit, which brands itself as a “meme coin market maker,” artificially boosted trading volumes for several crypto projects, including U.S.-based tokens, to make them appear more popular and active. Gotbit directors Qawi Jalili and Fedor Kedrov, previously named in a separate indictment, were also charged in this new filing in the District of Massachusetts.

Prosecutors allege that, from 2018 to 2024, Gotbit used wash trading techniques to help cryptocurrencies gain listings on popular platforms like CoinMarketCap and major exchanges. These practices reportedly allowed Andriunin and Gotbit to exploit trends in meme-based coins, which often see rapid price rises but are also prone to volatile declines.

Court documents reveal that Andriunin allegedly developed software specifically for executing wash trades, generating fake activity to mislead investors and exchanges. The indictment states that Gotbit employees actively marketed these tactics to clients, emphasizing their expertise in masking these actions on public blockchains.

Gotbit is said to have facilitated millions of dollars in wash trades, profiting tens of millions, with Andriunin reportedly transferring substantial amounts into his personal Binance account.

The DOJ further accuses Gotbit of targeting meme coin investors in pump-and-dump schemes, where artificially inflated trading volume would draw in investors, allowing Gotbit to sell at a profit and leave buyers facing losses.

Evidence in the case includes findings from Operation Token Mirrors, a DOJ investigation that created a fictitious token to monitor manipulation tactics.

If convicted, Andriunin could face a maximum sentence of 20 years in prison for wire fraud, plus additional penalties for conspiracy.