- Gotbit founder has reached a plea agreement with US authorities to forfeit $23 million.
- Authorities arrested Aleksei Andriunin over allegations of market manipulation.
- The SEC has opened a fresh case against Gotbit
Gotbit founder Aleksei Andriunin has reportedly reached a plea agreement with US authorities to forfeit $23 million in crypto assets to settle allegations of market manipulation.
Authorities accused Andriunin of orchestrating schemes that harmed regular market participants by artificially inflating cryptocurrency prices, leading them to buy at a premium.
What Led to Aleksei Andriunin’s Arrest and Extradition?
Security officials apprehended the Gotbit founder in Portugal last year, and he was subsequently extradited to the US this past February.
Following his extradition, Andriunin’s legal team reportedly presented a plea bargain to the court and the prosecution, outlining the proposed terms. However, the final say rests with the court, and either side can back out if the judge rejects any part of the deal.
Key Terms of the Proposed Plea Agreement
The plea bargain reportedly includes a significant element: an exemption from further jail time and additional penalties.
This suggests that Andriunin’s offer of forfeiting $23 million in crypto assets would be his way of settling the charges without serving a prison sentence or paying further fines related to this specific infraction. However, the Gotbit founder’s ultimate fate hinges on the court’s decision regarding the case.
Related: GOTBIT’s Market Manipulation Charges Cast Shadow Over Crypto Markets
What Were the Penalties Andriunin Was Facing?
The stakes were high for Andriunin, who was facing a potential jail term of up to 20 years on charges of wire fraud and conspiracy to commit market manipulation. Other potential penalties against Andriunin’s company, Gotbit, and three other related firms included substantial fines of $500,000 or twice the amount gained or lost from the alleged offenses, along with mandatory restitution and further asset forfeiture, potentially including up to five years of probation.
What Separate Charges Does Gotbit Face from the SEC?
Adding another layer to the legal complexities, Gotbit is also facing a separate charge from the SEC. The securities regulator accuses the firm of keeping detailed internal records that compared artificially “created volume” against natural “market volume” in various crypto markets.
According to the SEC’s allegations, Gotbit actively sought out clients by explicitly detailing how their services could help mask activities on public blockchains.
Related: SEC Faces Self-Investigation for Market Manipulation After Fake Bitcoin ETF News
Following the alternative charge, Andriunin could face more punishment than the intended forfeiture. He could serve three years of supervised release with strict conditions and desist from participating in crypto activities during this time.
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