Gotbit Consulting LLC, along with its Russian executives, was indicted by the U.S. Department of Justice and the Securities and Exchange Commission for its role in a widespread market manipulation scheme.
Using fictitious transactions, Gotbit inflated the prices and volumes of cryptocurrency assets, defrauding investors and reaping millions in illicit profits. The company's fraudulent activities spanned multiple jurisdictions, with key figures now facing extradition and prosecution.
Key points:
- Gotbit Consulting LLC d/b/a Gotbit ( website ), a Russian-controlled cryptocurrency market maker, is accused by the US Department of Justice and the US Securities and Exchange Commission of market manipulation and fraud.
- At the center of the investigation are founder Alexey Andryunin and leaders Fyodor Kedrov and Kavi Jalili.
- Gotbit allegedly provided wash trading services to artificially inflate cryptocurrency prices and trading volumes between 2018 and 2024.
This scheme misled investors into believing there was false demand for various crypto assets.
Brief description:
US authorities have stepped up their fight against manipulation in the cryptocurrency market: Gotbit Consulting LLC, a well-known market maker in the crypto industry, is facing serious charges from both the US Department of Justice and the Securities and Exchange Commission (SEC). FinTelegram previously reported on Gotbit’s involvement in systematic market manipulation, and new details have emerged.
According to the Department of Justice, Gotbit founder Alexei Andryunin, chief operating officer Fedor Kedrov and sales director Kavi Dzhalili allegedly orchestrated fictitious trades to artificially inflate the price and volume of cryptocurrency trading on behalf of clients. These scams have created a misleading impression of active market activity for crypto tokens such as Saitama and Robo Inu.
Gotbit, registered in Belize but operating worldwide, charged customers monthly fees to conduct these illegal transactions. The SEC also alleges that the company used its manipulative trading practices to mislead investors into believing there was high demand for these tokens. The manipulation spanned multiple jurisdictions, with fake volumes reported on major crypto platforms. Andryunin, arrested in Portugal on October 8, 2024, is now awaiting extradition, while Kedrov and Dzhalili are charged with wire fraud and conspiracy.
Actionable information:
Regulators and financial institutions must remain vigilant as crypto market manipulation schemes like Gotbit continue to exploit loopholes in the global cryptocurrency regulatory system. The ongoing allegations serve as a reminder of the risks posed by unregulated market makers in the crypto industry.
