- GotBit founder gives up $23 million in a legal deal to avoid prison.
- Regulators are increasing their focus on crypto firms and their practices.
- The case highlights the risks of market manipulation and financial misconduct.
As per papers by law, GotBit, A market making and crypto liquidity solutions firm, has been accused of manipulating token prices to create a false sense of demand. Regulators and law enforcement agencies have closely monitored the company, suspecting that its trading activities involved price inflation and wash trading.
Further, the Aleksei Andriunin decided to go for forfeiting $23m instead of prison time.
Impact on Crypto Industry
This case is a warning for crypto companies that manipulate the market. As rules get strict worldwide, companies must follow the law to avoid heavy fines or punishment.
Token Price Faking, Artificially making crypto prices look higher. Phantom Trading Activity, Using bots to create the illusion of high trading activity. Misleading Investors, Tricking people and making them to buy a token as popular when it is not.
Final call on GotBit
GotBit is among four firms charged by American prosecutors in the first criminal case aimed at market manipulation and fake trading in the cryptocurrency sector.
Although, Aleksei Andriunin skipped prison, the case provides a solid reason for future enforcement efforts in the industry. As spectators continue on inspection, the projects and the companies need to focus on safeguarding the investors and ensure trust in the sector.
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