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Cryptocurrency Firm Founder Pleads Guilty to Market Manipulation in U.S. Court

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Aleksei Andriunin, the founder and CEO of cryptocurrency financial services firm Gotbit, pleaded guilty on Friday to U.S. federal charges related to a market manipulation scheme. Andriunin, a Russian national, and his company entered guilty pleas in federal court in Boston to charges of conspiring to commit market manipulation and wire fraud.

The guilty pleas came after Andriunin, 26, was extradited from Portugal in October, where he had been residing prior to his arrest. This followed a broad investigation into the cryptocurrency sector, known as “Operation Token Mirrors,” which involved the FBI’s creation of its own digital token to help catch fraudsters operating in the crypto market.

As part of his plea agreement, prosecutors have recommended that Andriunin be sentenced to up to two years in prison when he faces sentencing on June 16. Additionally, Gotbit has agreed to forfeit approximately $23 million worth of cryptocurrency.

From 2018 to 2024, Gotbit engaged in “wash trading,” a form of fraudulent trading in which assets are bought and sold with no intention of real market activity, to artificially inflate trading volumes for cryptocurrency clients. The goal was to make tokens appear more valuable to facilitate their listing and trading on larger exchanges. Andriunin was known to have developed a code specifically designed for wash trading, as he described in a 2019 interview.

The manipulation involved millions of dollars in wash trades, and Gotbit earned tens of millions of dollars in proceeds for its services. Some of the cryptocurrencies involved in the scheme included Saitama and Robo Inu, and individuals associated with these cryptocurrencies have also been charged.

Disbarred Lawyer Tom Girardi Convicted of Embezzling Millions from Clients

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Tom Girardi, the once-celebrated lawyer and estranged husband of “The Real Housewives of Beverly Hills” star Erika Jayne, was found guilty of embezzling tens of millions of dollars from his clients, including victims of severe accidents and families of deceased individuals. The conviction, reached after a 13-day trial and less than a day of deliberations, includes four counts of wire fraud.

Girardi, aged 85, was previously a renowned attorney known for representing victims in high-profile cases, such as the lawsuit against Pacific Gas and Electric, which was depicted in the film “Erin Brockovich.” However, his reputation crumbled, leading to his disbarment in 2022 for client thefts.

During the trial, evidence presented included testimonies from former clients, including an Arizona woman whose husband died in a boat accident and victims of a 2010 gas pipeline explosion in San Bruno. Prosecutors characterized Girardi as a “Robin-Hood-in-reverse,” exploiting his celebrity status to defraud vulnerable clients.

Defense attorneys attempted to shift blame to Girardi’s firm’s CFO, Chris Kamon, who faces separate charges and has pleaded not guilty. They depicted Girardi as a figurehead with little involvement in the alleged thefts. They also argued that Girardi, diagnosed with Alzheimer’s disease, was not competent to stand trial. However, the court determined he was fit for proceedings.

Prosecutors presented evidence of Girardi giving false reasons for not distributing court-awarded funds and instructed clients not to blame him. Girardi faces a potential sentence of up to 80 years in prison, with sentencing scheduled for December. He remains free until then and is also facing federal wire fraud charges in Chicago for allegedly stealing $3 million from families affected by the 2018 Lion Air crash.