Russian Crypto Executive Avoids Additional U.S. Prison Time in High-Profile Market Manipulation Case

Aleksei Andriunin, the Russian-born founder and CEO of the prominent cryptocurrency financial services firm Gotbit, has been spared additional prison time in the United States after pleading guilty to participating in a wide-ranging scheme aimed at manipulating cryptocurrency markets for profit.

Aleksei Andriunin, founder of Gotbit, avoids further U.S. prison time after pleading guilty to cryptocurrency market manipulation.

In a closely watched case that highlights increasing global scrutiny of crypto trading practices, U.S. District Judge Angel Kelley sentenced Andriunin to eight months in prison, a term he has already served while detained in Portugal awaiting extradition. Andriunin was arrested in October 2024 in Lisbon and extradited to the U.S. earlier this year under charges related to market manipulation and wire fraud.

Prosecutors Sought Stiffer Penalty

Federal prosecutors had pushed for a harsher 15-month sentence, arguing that Andriunin’s actions contributed to widespread market deception in the crypto space. According to the U.S. Department of Justice, from 2018 to 2024, Gotbit was actively involved in "wash trading"—a manipulative practice that involves placing and executing fake trades to inflate the perceived trading volume of cryptocurrency tokens.

Such activity can mislead investors and exchanges, making digital assets appear more popular or legitimate than they actually are. Prosecutors said Gotbit offered these services to multiple crypto projects, many of which used the inflated metrics to secure listings on major exchanges and attract investor interest.

"Andriunin wasn't just a participant—he was a key architect of a scheme that profited by deceiving the market," a DOJ spokesperson said. "This kind of manipulation undermines trust in digital assets and must be met with strong consequences."

FBI’s “Operation Token Mirrors” Breaks New Ground

Andriunin was one of 15 individuals and three firms indicted last year as part of a groundbreaking U.S. federal investigation called "Operation Token Mirrors", which was the FBI’s first known operation to deploy a fake cryptocurrency to detect fraud. As part of the sting, federal agents created a new digital token and monitored how it was artificially promoted or traded—leading them to a web of companies engaged in deceptive market activity.

According to court documents, Gotbit developed algorithms specifically designed to generate fake buy and sell orders for client tokens. These practices misled not only everyday investors but also sophisticated trading platforms that rely on metrics like volume and liquidity to approve new tokens for listing.

Gotbit’s Rise and Fall

Before the legal troubles began, Gotbit had emerged as a powerhouse in the crypto market-making business. With over 200 employees and tens of millions in annual revenue, the company positioned itself as a go-to service provider for new crypto startups looking to create "legitimate" trading activity for their tokens.

In a 2019 interview that later surfaced during the investigation, Andriunin openly boasted about Gotbit’s technology for wash trading. He described how the software could be used to inflate a token's market performance to attract attention from top-tier exchanges. This interview became a pivotal piece of evidence in the government’s case.

Penalties and Deportation Await

In addition to the prison sentence, Gotbit has been ordered to forfeit $23 million worth of cryptocurrency assets as part of a separate plea deal. The financial penalty reflects what prosecutors described as ill-gotten gains from years of market manipulation.

Andriunin’s attorney, Roger Burlingame of Dechert LLP, welcomed the leniency in sentencing and said his client is relieved the ordeal is coming to an end. “We’re incredibly gratified by the sentence,” Burlingame said. “Mr. Andriunin is eager to return home to be with his wife and family and move forward from this chapter.”

However, Andriunin now faces deportation proceedings, and it remains unclear whether he will be able to resume any business operations in the crypto sector abroad.

A Message to the Market

This case serves as a cautionary tale for crypto firms operating in regulatory gray zones. While digital assets remain a largely unregulated frontier in many countries, U.S. authorities have ramped up enforcement actions, particularly against companies that mislead investors through manipulation or false advertising.

Experts say this may just be the beginning. “Operation Token Mirrors has opened the door to a new era of crypto enforcement,” said a former SEC attorney. “The industry is no longer in the Wild West—it’s being watched, and companies that bend the rules can expect serious consequences.”

The outcome of the Gotbit case sets a precedent for how U.S. regulators and courts may handle future violations in the increasingly scrutinized digital asset space.