The U.S. Department of Justice (DOJ) has continued its relentless pursuit of integrity in the digital asset sector, recently disclosing a significant crackdown on market manipulation. On March 27, the DOJ announced its intent to seize roughly $23 million in cryptocurrency from Gotbit Consulting LLC and its founder, Aleksei Andriunin, following a guilty plea from the parties involved.
Gotbit Consulting, a Boston-based market maker in the digital asset sector, confessed to manipulating trading activity on behalf of its cryptocurrency clients in a federal court. The firm is accused of engaging in deceptive practices to fabricate trading volumes, misleading investors about the actual liquidity and demand of certain cryptocurrencies.
As part of the resolution with the federal government, Gotbit has agreed to surrender the cryptocurrency holdings tied to these fraudulent activities. The DOJ’s announcement clarified that the seized assets primarily consist of USDT (tether) and USDC (circle) from un-hosted cryptocurrency wallets controlled by Gotbit Consulting LLC. These stablecoins have their value tied to the U.S. dollar, providing a semblance of stability in the notoriously volatile crypto market.
According to the government, these assets constitute proceeds from wire fraud and conspiracy to commit wire fraud, as well as property involved in unlawful transactions. These allegations form the basis of a civil forfeiture complaint, which is yet to be adjudicated.
The case against Gotbit and its founder, 26-year-old dual citizen of Russia and Portugal, Aleksei Andriunin, has been building since his arrest abroad in October 2024. Andriunin was extradited to the U.S. in February 2025. The prosecution alleges that between 2018 and 2024, Gotbit orchestrated a wash trading scheme. This involved using custom-built software and multiple accounts to simulate trading activity, manipulating the prices of specific tokens.
Among the tokens implicated in this scheme are Robo Inu and Saitama, which were clients of Gotbit. These tokens are now subject to separate investigations. As part of the plea agreement, Gotbit has agreed to cease all operations and forfeit the $23 million in digital assets. The DOJ’s announcement also revealed that, in line with the plea agreement with Andriunin, the government will recommend a prison sentence of up to two years.
This case underscores the DOJ’s ongoing commitment to maintaining the integrity of digital markets and protecting investors from fraudulent practices. The outcome of this case could have significant implications for the broader crypto industry, particularly regarding the need for more stringent oversight and regulatory measures to prevent such deceptive practices in the future.
