The founder of cryptocurrency financial services firm Gotbit has been extradited from Portugal to the United States to face charges of market manipulation and fraud.

Aleksei Andriunin, a 26-year-old Russian national, appeared in a Boston court, where he pleaded not guilty to wire fraud and conspiracy charges. Prosecutors allege his company engaged in sham trading to artificially inflate the value of digital tokens.

Authorities claim that between 2018 and 2024, Gotbit manipulated cryptocurrency trading volumes through a practice known as 'wash trading'. The FBI's 'Operation Token Mirrors' played a key role in the investigation, reportedly using its own digital token to detect fraudulent activities.

Gotbit allegedly facilitated wash trades worth millions and profited tens of millions of dollars by boosting the market appeal of cryptocurrencies such as Saitama and Robo Inu.

Andriunin was arrested in Portugal in October when US authorities first announced charges against him and others. His company and two employees in Russia also face legal action, though they have not yet appeared in court.

The case is part of a broader crackdown on fraud in the cryptocurrency sector.