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Cryptocurrency Company Founder Extradited from Portugal to Face Fraud Charges in the US

Aleksei Andriunin, the founder and CEO of the cryptocurrency market maker Gotbit, has been extradited from Portugal to the U.S. to address charges of engaging in a scheme to manipulate the digital token market for client companies. Upon his appearance in Boston federal court, the 26-year-old Russian national pleaded not guilty to wire fraud and conspiracy charges. Andriunin's attorney, Roger Burlingame from the law firm Dechert, declined to provide a statement.

Andriunin and his company were among those targeted in an investigation known as "Operation Token Mirrors" by the FBI, involving 15 individuals and three firms, where the FBI created its digital token to detect fraudulent activities in the cryptocurrency sector.

Prosecutors allege that between 2018 and 2024, Gotbit conducted wash trades and market manipulation to inflate trading volumes for various cryptocurrencies on behalf of clients. Notably, Andriunin disclosed creating algorithms for wash trading to boost trading volume, facilitating listings on major cryptocurrency exchanges.

Gotbit reportedly executed wash trades amounting to millions of dollars, generating tens of millions in proceeds via services provided to cryptocurrencies like Saitama and Robo Inu. Associated individuals of these cryptocurrencies are also facing charges.

The arrest of Andriunin in Portugal coincided with the unveiling of charges against him and others. Gotbit and two Russian employees are also implicated in the case, but have not appeared in court to respond to the accusations.