SEC settles crypto wash-trading claims against market maker Gotbit

What changed

On August 3, 2026 the SEC announced a proposed final consent judgment against Gotbit Consulting LLC, a crypto market maker, settling 2024 claims that it wash traded a crypto asset offered and sold as an investment contract. The proposed judgment, filed July 28, 2026 and subject to court approval, would enjoin Gotbit under Securities Act Section 17(a)(1) and (3), Exchange Act Sections 9(a)(2) and 10(b) with Rule 10b-5(a) and (c), and bar it from participating in any securities issuance, purchase, offer, or sale. The SEC voluntarily dismissed its claims against individual defendant Fedor Kedrov; Gotbit separately pleaded guilty in a parallel criminal case. The settlement is without admissions. The action continues the SEC’s treatment of the manipulated crypto asset as subject to an investment contract analysis.

Who it affects

• Token issuers and trading firms that engage market makers
• Advisers assessing market integrity of tokens held or considered for client exposure

What is still open

• Court approval of the proposed judgment
• Whether similar wash-trading actions follow against other market makers from the same 2024 sweep

What it means for an advisor

• Include market-maker manipulation history in diligence on thinly traded tokens; wash-traded volume can misstate liquidity available to clients