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27/02/25
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Crypto Hedge Fund Founder Extradited to US on Market Manipulation Charges
The founder of a crypto hedge fund and market maker called Gotbit has been extradited from Portugal to the United States to face charges that include market manipulation and conspiracy to commit wire fraud. Aleksei Andriunin was apprehended by Portuguese authorities on October 8 and transferred to the US on October 25. Following his arrival, he made a court appearance in Boston, where a federal judge ordered his continued detention pending further proceedings.
Andriunin, along with Gotbit directors Fedor Kedrov and Qawi Jalili, was indicted by a federal grand jury on October 31. Their alleged involvement stems from a deception orchestrated by the US Federal Bureau of Investigation involving a fictitious “trap token,” designed to capture individuals engaging in market manipulation.
The allegations against Gotbit include providing market-making services that utilized specific software to execute wash trading, thereby artificially inflating trading volumes. This was reportedly done to enhance the likelihood of client crypto tokens being listed on prominent market aggregators and traded on various exchanges. Kedrov and Jalili are accused of promoting these deceptive trading practices to potential clients, with authorities noting their admissions during a 2019 interview about strategies to hide wash trades on public blockchains.
US officials assert that between 2018 and 2024, Gotbit received substantial financial gains through these services, amounting to tens of millions of dollars. Notably, Andriunin, a 26-year-old Russian national, is believed to have transferred a portion of these illicit proceeds into his personal account.
If found guilty, Andriunin could face a lengthy prison sentence of up to 20 years for wire fraud, alongside significant fines. The charges relate to conspiracy to commit market manipulation and wire fraud and may also lead to an additional five-year prison term. Furthermore, the U.S. Securities and Exchange Commission has initiated a separate fraud lawsuit against Gotbit and Kedrov.
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