Gotbit founder Aleksei Andriunin has reached a plea agreement with U.S. prosecutors that could see him avoid significant prison time in exchange for forfeiting approximately $23 million in stablecoins.
According to court documents, Andriunin has pleaded guilty to one count of market manipulation and two counts of wire fraud. Originally facing over 20 years in prison, the deal would limit his sentence to a maximum of 24 months, followed by three years of supervised release. During this period, he will be barred from participating in cryptocurrency-related activities.
The agreement also exempts Andriunin from additional financial penalties beyond asset forfeiture. Prosecutors had estimated potential fines of $500,000 or twice the amount gained or lost through his offences. However, he avoids further financial obligations by surrendering the illicitly obtained funds.
Court filings reveal that Andriunin will relinquish nearly $14 million in Tether (USDT) and approximately $9 million in USD Coin (USDC), held across four crypto wallets under Gotbit Consulting LLC. While these assets are officially tied to the firm, prosecutors state that the wallets were entirely controlled by Andriunin, leading to their forfeiture under civil rather than criminal proceedings.
The case against Andriunin stems from allegations of a years-long “wash trading” scheme. He artificially inflated trading volumes and executed fake trades between 2018 and 2024 while serving as Gotbit’s CEO. His firm was among four companies targeted in the first-ever U.S. criminal prosecution against crypto market manipulation, alongside ZM Quant, CLS Global, and MyTrade.
The plea deal follows criminal charges filed against Andriunin in October 2024 for allegedly orchestrating a $42 million crypto market manipulation scheme. While the case raised concerns about fraudulent practices in the industry, analysts believed the fallout could lead to positive regulatory developments for the sector.
The court’s approval of the plea deal will determine whether Andriunin secures the reduced sentence or faces additional penalties.
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