Gotbit CEO Admits Fraud, Agrees to Pay $23 Million

Gotbit founder Alexey Andriunin has reached a plea agreement with U.S. authorities, admitting to fraud and market manipulation. The agreement includes the forfeiture of crypto assets worth $23 million, as stated in a letter submitted by prosecutors to the federal court in Massachusetts. 

Andriunin’s involvement in the market maker’s operations “harmed market participants” who purchased cryptocurrencies “at fraudulently inflated prices,” the prosecution claims. 

The 26-year-old founder and CEO of Gotbit was detained in October 2024 in Portugal. It was alleged that from 2018 to 2024, the firm provided services for market manipulation and sham trading to several crypto companies, including those based in the United States. 

In November, the Massachusetts prosecutor’s office charged Andriunin with fraud and conspiracy to manipulate the crypto market. In February 2025, the Russian national was extradited to the U.S.

“The parties agree that the fraudulent scheme resulted in losses. Specifically, it caused reasonably foreseeable financial harm to disparate market participants who purchased cryptocurrencies at fraudulently inflated prices and lost money after the prices subsequently fell […]”, the letter states.

The document details the plea agreement, which includes provisions allowing either party to withdraw if the court rejects any of its terms. 

The settlement will avoid jail time and additional fines beyond the forfeiture, which includes the seizure of USDT and USDC held in Andriunin’s personal wallets.

The agreement stipulates a probation period of no more than five years for each charge. 

The final decision on sentencing rests with the court. The Gotbit CEO faces a maximum of 20 years in prison.

“The defendant understands that the court is not obliged to follow this calculation,” the letter states. 

Andriunin waived his right to appeal his sentence and file a civil suit in exchange for concessions made by the prosecutor in the agreement.

Back in June 2024, the market maker Gotbit admitted to dumping the WATER token by 70%.