{"id":18248,"date":"2024-11-01T12:14:28","date_gmt":"2024-11-01T10:14:28","guid":{"rendered":"https:\/\/forklog.com\/en\/us-justice-department-charges-gotbit-founder-with-fraud\/"},"modified":"2024-11-01T12:14:28","modified_gmt":"2024-11-01T10:14:28","slug":"us-justice-department-charges-gotbit-founder-with-fraud","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/us-justice-department-charges-gotbit-founder-with-fraud\/","title":{"rendered":"US Justice Department Charges Gotbit Founder with Fraud"},"content":{"rendered":"<p>The Massachusetts Attorney&#8217;s Office has charged Alexey Andryunin, founder and CEO of market maker Gotbit, with fraud and conspiracy to manipulate the cryptocurrency market.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Founder of cryptocurrency financial services firm &#8220;Gotbit&#8221; indicted for market manipulation and fraud conspiracy. Allegedly made tens of millions of dollars in proceeds for fraudulent &#8220;wash trading&#8221; services. <br \/>?<a href=\"https:\/\/t.co\/d0ofGJkACz\">https:\/\/t.co\/d0ofGJkACz<\/a><\/p>\n<p>\u2014 U.S. Attorney Massachusetts (@DMAnews1) <a href=\"https:\/\/twitter.com\/DMAnews1\/status\/1852072697800405006?ref_src=twsrc%5Etfw\">October 31, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In addition to the 26-year-old Russian citizen residing in Portugal, similar charges have been brought against the company itself and two directors\u2014Fedor Kedrov, who oversaw Gotbit&#8217;s sales, and Kavi Jalili, who was responsible for market making.<\/p>\n<p>According to court documents, from 2018 to 2024, the firm provided services to create artificial trading volumes for several market participants based in the United States.<\/p>\n<p>In a 2019 interview, Andryunin allegedly described how he created code for fictitious cryptocurrency trading. The software allowed for inflated trading metrics to achieve rankings on CoinMarketCap and listings on major exchanges.<\/p>\n<p>He kept records of market manipulations, including tables comparing created volumes with natural ones. To conceal its activities, Gotbit used multiple accounts and earned &#8220;tens of millions of dollars&#8221; from its services.<\/p>\n<p>Andryunin transferred his personal income to his Binance account.<\/p>\n<p>The fraud charge carries a penalty of up to 20 years in prison, a fine of $250,000 or double the gain\/loss amount, and forfeiture of illegally obtained income.<\/p>\n<p>If the Gotbit founder is found guilty of conspiracy, he faces up to five years in prison and similar financial penalties.<\/p>\n<p>The case against Gotbit includes tokens such as Saitama Inu and Robo Inu.<\/p>\n<p>Earlier, their creator, Wai Pham, settled charges brought by the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> for fraud and market manipulation. The Vietnam-born U.S. resident agreed to return illegal profits and pay a fine.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Massachusetts Attorney&#8217;s Office has charged Alexey Andryunin, founder and CEO of market maker Gotbit, with fraud and conspiracy to manipulate the cryptocurrency market. Founder of cryptocurrency financial services firm &#8220;Gotbit&#8221; indicted for market manipulation and fraud conspiracy. Allegedly made tens of millions of dollars in proceeds for fraudulent &#8220;wash trading&#8221; services. ?https:\/\/t.co\/d0ofGJkACz \u2014 U.S. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1464,1246,26],"class_list":["post-18248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-accusations","tag-scammers","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=18248"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/18247"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=18248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=18248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=18248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}