Aleksei Andriunin is the founder and CEO of the cryptocurrency financial services company Gotbit. Prosecutors charged him with wire fraud and conspiracy to commit market manipulation and wire fraud, the U.S. Department of Justice (DOJ) said Thursday.
According to the announcement:
Authorities have charged a Russian national living in Portugal for his involvement in a broad conspiracy. They accuse him of manipulating cryptocurrency markets on behalf of client cryptocurrency companies.
According to the indictment, Aleksei Andriunin planned a massive market manipulation scheme to fabricate trading activity and increase the visibility of specific cryptocurrencies through Gotbit, a business referred to as a “market maker” in the cryptocurrency industry.
According to the prosecution, Aleksei Andriunin and Gotbit engaged in a tactic known as “wash trading,” which creates fake transactions to appear as though there is active market interest. Based on court documents, this strategy aided Gotbit’s customers—including American businesses—in obtaining listings on websites such as Coinmarketcap and entry to more significant cryptocurrency exchanges.
The DOJ explained:
For several bitcoin businesses, including those in the US, Gotbit offered market manipulation services to generate fictitious trading activity.
Aleksei Andriunin allegedly kept data that contrasted the “Created Volume” from wash transactions with the actual market volume. He then advertised these fraudulent services to prospective customers, claiming that they would increase their trading success and visibility.
Aleksei Andriunin Punishments:
Apart from Andriunin, Fedor Kedrov and Qawi Jalili, directors of Gotbit, were also linked to the purported plot. Andriunin can be subject to harsh punishments if found guilty. The Justice Department stated that the accusation of wire fraud carries a maximum prison term of 20 years. This also includes three years of supervised release, a fine of up to $250,000 or double the gross gain or loss from the offense, restitution, and forfeiture.”A sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution, and forfeiture are all possible outcomes of the conspiracy to commit market manipulation and wire fraud charge.”
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