Gotbit CEO Acknowledges Fraud, Agrees to $23 Million Settlement with U.S. Authorities

The founder of Gotbit, Alexey Andryunin, has reached a plea agreement with U.S. authorities acknowledging his guilt in fraud and market manipulation. As part of the deal, $23 million worth of crypto assets will be forfeited, as stated in a letter submitted by prosecutors to the federal court in Massachusetts.

The prosecution claims that Andryunin’s involvement in market-making activities «harmed market participants» who purchased cryptocurrencies «at fraudulently inflated prices.»

The 26-year-old founder and CEO of Gotbit was arrested in Portugal in October 2024. It was alleged that from 2018 to 2024, the firm facilitated market manipulation and wash trading for several crypto companies, including those based in the U.S.

In November, the Massachusetts Attorney General charged Andryunin with fraud and conspiracy to manipulate the cryptocurrency market. In February 2025, he was extradited to the U.S.

“The parties agree that the fraudulent scheme led to losses. Specifically, it caused reasonably foreseeable financial harm to various market participants who bought cryptocurrencies at fraudulently inflated prices and subsequently lost money when the prices dropped […]”, reads the letter.

The document provides details of the guilty plea agreement, including provisions that allow either party to withdraw from the arrangement if any part of it is rejected by the court.

This settlement will help Andryunin avoid a prison sentence and additional fines beyond the forfeiture, which includes the seizure of USDT and USDC held in his personal wallets.

The agreement stipulates a probationary period of no more than five years for each count of the charge.

The final decision regarding sentencing will be made by the court. The CEO of Gotbit faces a maximum sentence of 20 years in prison.

“The defendant understands that the court is not required to adhere to this calculation,” the letter notes.

Andryunin waived his right to appeal the verdict and file a civil suit in exchange for concessions made by the prosecutor in the agreement.

It’s also worth noting that in June 2024, Gotbit’s market-making activities were publicly acknowledged when the firm admitted to dumping the WATER token by 70%.