Recently, Gotbit, which has been accused of fraud and market manipulation, is still a market maker for well-known projects such as Neiro and Hamster Kombat

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ) jointly filed lawsuits on October 9 against four cryptocurrency companies suspected of fraud and market manipulation, including Gotbit Consulting, ZM Quant Investment, and CLS Global. These manipulated tokens were then sold at artificially inflated prices to unsuspecting buyers. These companies also promoted these tokens and persuaded exchanges to lower fees, further increasing profits.

Gotbit is the largest company on this list. This market maker collaborated with well-known brands such as Bonk, Neiro, Hamster Kombat, and Robo Inu. At its peak, the company managed assets totaling $1.5 billion and made nearly $200 million in investments through Gotbit Ventures. Gotbit now faces a maximum fine of $5 million or twice the amount of illegal gains or losses, as well as asset forfeiture. The CEO, who is also facing charges, could face up to 20 years in prison.

It is reported that in 2019, Gotbit's 20-year-old CEO Alexey Andryunin told CoinDesk about his practices: Gotbit was not registered in any jurisdiction because it was "not entirely ethical." In 2023, ZachXTB uncovered Andryunin's operations with the help of some leaked documents and a promotional material that stated: "In the first few minutes of the price discovery phase, we will push the price up 10 times to create FOMO and accumulate as much buying power as possible, and sell the most tokens during the subsequent surge."