Today in crypto: Binance fraud ring busted in Australia

Gotbit founder forfeits $23M to dodge jail time

The founder of market-making firm Gotbit has secured a plea deal with U.S. authorities, agreeing to forfeit $23 million in cryptocurrency assets to avoid prison time.

Aleksei Andriunin, 26, was extradited to the U.S. from Portugal in February, four months after his arrest. He faced charges of wire fraud and market manipulation, carrying a maximum sentence of 20 years in prison. Instead, the plea deal sees him surrender $23 million worth of stablecoins issued by Tether and Circle, held in four digital wallets under his control.

According to court documents, Gotbit operated as a “market manipulation enterprise” from 2018 to 2024, offering services to inflate token prices through wash trading. This technique artificially created the appearance of active trading, misleading investors into buying at inflated prices.

The U.S. Department of Justice said Gotbit’s actions caused financial harm to “dispersed market participants” who were deceived by fake trading volume. Regulators claim Gotbit kept detailed records comparing artificially created volume to natural market volume, blatantly promoting their manipulation services.

Andriunin’s legal troubles intensified after a 2019 interview where he admitted that Gotbit’s business model was “not entirely ethical.” That statement was later used as evidence against him, making the case for prosecution even stronger.

Despite the deal, the court has discretion over sentencing, which means Andriunin could still face jail time. However, under the agreement, he will serve three years of supervised release and will be barred from participating in any cryptocurrency activities during that period.

Crypto markets rally on Fed rate decision

Bitcoin and other major cryptocurrencies jumped after the Federal Reserve announced it would hold interest rates steady. The decision boosted investor confidence, pushing bitcoin up 4% to around $85,890 – its highest level since March 9th. Ethereum saw even bigger gains, climbing 7% to $2,038, while Solana rose 8% to nearly $134.

The rally followed reassuring comments from Fed Chair Jerome Powell, who suggested that recent tariffs introduced by President Trump would likely have a “transitory” effect on inflation. Powell’s words eased market fears, encouraging traders to move back into riskier assets, including crypto.

Traditional markets also responded positively, with the S&P 500 and Nasdaq both gaining over 1%. Analysts say the rate pause gives the crypto sector breathing room after weeks of uncertainty fueled by fears of a potential trade war.

Despite the boost, market watchers remain cautious, as sentiment can change rapidly with economic and geopolitical developments. For now, traders seem optimistic that the Fed’s steady hand will keep markets calm.

Australian police bust Binance scam ring

In a coordinated effort with Binance Australia, law enforcement has dismantled a major crypto scam ring that was using fake Binance customer support messages to defraud users.

The scammers tricked victims into moving their crypto assets to wallets controlled by the criminals, claiming it was a security measure. Over 130 potential victims have been identified, with the Australian Federal Police leading the investigation alongside the National Anti-Scam Centre.

The fraudsters used sophisticated social engineering tactics, sending messages that looked like they came from legitimate Binance communication threads. Once victims called a fake customer support number, they were instructed to transfer funds to a “trust wallet” for safekeeping.

Binance Australia has pledged full cooperation, while also facing legal challenges from the Australian Securities and Investments Commission over its classification of retail investors. The scam ring's exposure highlights the ongoing battle against crypto fraud, as regulators and companies work together to protect users.

Robinhood gets bullish price target

Investment bank Compass Point has issued a “buy” rating for Robinhood Markets, predicting a 50% increase in share price to $61. Analysts pointed to the company’s crypto trading potential, particularly after reporting a 700% surge in crypto revenue in Q4 2024.

Robinhood’s crypto division has been lagging behind competitors like Coinbase, but analysts believe the platform’s established user base could help it expand quickly in the U.S. market. Compass Point estimates that new crypto services could generate up to $665 million in additional revenue.

Robinhood’s recent decision to launch a prediction market for March Madness has also sparked interest from retail traders, adding another layer of diversification to its offerings. With traditional finance giants increasingly venturing into crypto, Robinhood appears well-positioned to capitalize on the growing trend.

Why today’s news matters

The Gotbit case highlights the risks of market manipulation and the growing enforcement efforts aimed at cleaning up the crypto sector. While Andriunin’s plea deal avoids jail time, it reinforces the message that authorities are taking manipulation seriously.

Meanwhile, the Fed’s rate pause has given the crypto market a much-needed boost, but whether it leads to sustained gains remains uncertain. Binance’s scam ring bust shows that even the biggest exchanges are vulnerable to sophisticated fraud, while Robinhood’s bullish outlook suggests that mainstream financial institutions are getting more comfortable with crypto’s future.

Crypto’s journey to mainstream acceptance continues, but the road remains bumpy. As regulation tightens and institutions grow bolder, the industry will have to adapt quickly to keep up.