Alexey Andryunin Case: Unveiling Cryptocurrency Market Manipulation

The cryptocurrency sector recently witnessed a major scandal involving Alexey Andryunin, the founder of market-making company Gotbit. He has entered a guilty plea agreement with the U.S. Department of Justice, admitting to charges of fraud and market manipulation, resulting in the forfeiture of approximately $23 million in cryptocurrency.

Timeline of Events

• Arrest in Portugal: Andryunin was apprehended on October 6, 2024.
• Extradition to the U.S.: He was handed over to U.S. authorities in February 2025.
• Charges: The primary charges included fake transactions and volume manipulation.

Details of the Fraud

Andryunin was accused of engaging in wash trading, conducting fake transactions to artificially boost trading volumes of meme coins and lesser-known tokens. To build a case against Andryunin, the FBI launched a clever operation.

The FBI Operation

• Creation of NexFundAI: The FBI rolled out the NexFundAI token and registered a company by the same name.
• Agreement with Gotbit: An agreement was struck for NexFundAI to «create liquidity.»
• Trade Volume Fluctuations: A sudden increase in trade volumes, followed by an equally swift decline, confirmed the use of wash trading.

As part of the plea agreement, Andryunin accepted the forfeiture of his cryptocurrency and potential confiscation of other assets, such as vehicles and cash, waiving any objections or claims.

Potential Sentencing

Andryunin faced a potential sentence of 5 to 20 years in prison, along with fines and restitution. However, after pleading guilty, the prosecutor agreed to recommend a lighter sentence:

1. Up to 2 years in prison
2. 3 years probation
3. Restitution with the amount to be decided at sentencing

This case serves as a significant warning to the cryptocurrency market, highlighting the need for transparency and regulation. Such manipulations undermine investor trust and affect the stability of digital assets.