Gotbit Crypto News: $23M Scam Busted, CEO Jailed, Firm Shut

Gotbit Crypto News: Aleksei Andriunin Sentenced for Market Fraud

The crypto space just got a loud reality check — and yes, it’s trending all over Gotbit crypto news. One of the most talked-about “market makers” in the industry, Gotbit Consulting LLC, has officially been busted for running a massive wash trading operation.

The punishment? Jail time, millions in forfeited cryptocurrency and a permanent shutdown. Let’s break it down.

What Did Gotbit Do Wrong?

The firm wasn’t just helping coins get noticed — they were faking trading volume, as per Wu Blockchain. Between 2018 and 2024, the firm created artificial activity on tokens so they’d appear “hot” and attract listings on CoinMarketCap and major crypto exchanges.

Source: Wu Blockchain X

That means a lot of the buzz behind tokens like Robo Inu and Saitama wasn’t real — it was generated by wash trading, where the same firm buys and sells the token repeatedly to make it seem active. They used multiple accounts to pull this off without getting caught on the blockchain.

In a 2019 interview, Gotbit’s founder Aleksei Andriunin openly bragged about building tools to do this. Turns out, it caught up with him.

CEO Sentenced, Company Forced to Shut Down

Fast forward to June 12, 2025 — a Boston federal court sentenced Andriunin to eight months in prison and a year of supervised release. Even FBI Boston on its X account confirmed that he was earlier arrested in Portugal and extradited to the U.S. in early 2025.

Source: FBI Boston

The company itself? Gone. It was hit with a five-year probation order, under which it must cease operations, and $23 million in assets were seized. This is by far the biggest headline in crypto news in years.

Not the First — and Probably Not the Last

This isn't an isolated case. The company is the third market maker to be penalized for trading scams in the past year. Firms like MyTrade and CLS Global FZC LLC also got caught offering shady “volume support services” to pump tokens with fake cryptocurrency volume.

It’s clear that U.S. regulators are tightening the screws on crypto market manipulation. The crackdown is real, and it’s hitting the space hard.

SEC Steps In with Civil Charges

If that wasn't enough, the SEC has now joined the party. They’ve filed a civil enforcement case against Gotbit, accusing the firm of breaking multiple securities laws. Between the DOJ arrest, asset forfeiture, and SEC case action, this is turning into a full-blown enforcement storm.

For anyone watching from the sidelines, this Gotbit crypto news story is more than just legal drama — it’s a reminder that fake hype comes with real consequences.