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Disgruntled coder who admitted to deploying a malware ‘kill switch’ to get back at his bosses sentenced to 4 years in prison

by admin August 25, 2025



After a total wait even longer than his prison sentence and being convicted in March, former software developer Davis Lu has finally been sentenced for a malware kill switch scheme he deployed in 2019.

Lu will have to serve four years in prison followed by three years of supervised release. It’s the end to a long saga that began with a frustration many are all too familiar with: a demotion. In 2018, the company Lu worked for as a senior software developer, Eaton Corporation, went through a corporate realignment.

As a result, Lu was demoted. He stayed at the company until September 9, 2019, when he was finally put on leave and asked to return his company laptop. Lu had apparently been planning for this. When he was demoted, he “began sabotaging his employer’s systems,” according to the Department of Justice.


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Lu’s havoc on his former employer included malicious code that sparked system crashes, blocked logins, deleted files, and ultimately ended with a “kill switch” that, according to the DoJ, locked out all users if Lu’s credentials were ever disabled. Lu even named the kill switch “IsDLEnabledinAD,” short for “Is Davis Lu enabled in Active Directory.”

When Lu was put on leave, that kill switch automatically triggered. The kill switch and Lu’s other malicious code resulted in “hundreds of thousands of dollars in losses” for his former employer. Now, it has also resulted in jail time for Lu, who was convicted in March. That conviction is not surprising since he straight up admitted to sabotaging his former employer all the way in October 2019.

However, Lu didn’t plead guilty and even reportedly designed his malicious code to make it look like it was coming from co-workers who took over his duties. Lu also deleted encrypted data from his company laptop before handing it over. But that clearly wasn’t enough to stop the FBI from tying the cyber sabotage back to Lu.

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August 25, 2025 0 comments
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Gotbit Got Got: Founder Sentenced to Prison for Crypto Wash Trading

by admin June 14, 2025



In brief

  • Gotbit Consulting LLC and its founder, Aleksei Andriunin, were sentenced for using wash trading to manipulate crypto markets.
  • The firm created fake trading volume to boost client tokens’ visibility, earning millions in the process.
  • The DOJ said Gotbit is the third crypto market maker convicted in a broader federal crackdown on digital asset fraud.

Crypto market maker Gotbit and its founder were sentenced Friday for using wash trading to falsely inflate the trading volume of meme coins on behalf of clients.

Massachusetts U.S. District Court Judge Angel Kelley ordered Gotbit Consulting LLC to forfeit $23 million in seized cryptocurrency, with founder Aleksei Andriunin sentenced to eight months in prison and one year of supervised release.

Both were charged in 2024 with market manipulation, wire fraud, and conspiracy. The charges were part of a broader crackdown announced in October, when the Department of Justice indicted 14 people and four companies, including Gotbit, ZM Quant, CLS Global, and MyTrade, for market manipulation and wire fraud.

As part of the plea agreement reached in March, Gotbit agreed to forfeit over $22.8 million in cryptocurrency, including approximately $9 million in Tether (USDT) and $4.2 million in USDC from one wallet, along with two additional wallets containing $5 million and $4.7 million in USDT.



The court found that the scheme caused financial harm to investors who bought overvalued cryptocurrencies, but the total losses or profits could not be reliably calculated for sentencing purposes, resulting in a reduced sentence for Andriunin.

“We’re incredibly gratified by the sentence, and he’s looking forward to getting home to his wife and family,” Andriunin’s attorney, Roger Burlingame, said in a statement.

In March, Andriunin pleaded guilty to charges of wire fraud and conspiracy to commit market manipulation.

“Between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies, including companies located in the United States and companies whose cryptocurrencies traded on platforms available to investors located in the United States,” the DOJ said in a statement.

Wash trading is a practice in which the same asset is repeatedly bought and sold to inflate trading volume without any legitimate market activity. Often, this manipulation is done using multiple accounts or by colluding with others.

According to the DOJ, Andriunin created software that executed trades between multiple controlled accounts to simulate legitimate volume. The firm marketed these tools as a way to gain listings on platforms like CoinMarketCap and larger cryptocurrency exchanges.

“Gotbit admitted that it engaged in manipulative trades to artificially increase the trading price and volume of tokens for clients that included Robo Inu and Saitama,” prosecutors said.

Gotbit is the third crypto market maker convicted in connection with illegal wash trading, following the founder of MyTrade in October 2024 and CLS Global FZC LLC in April 2025, according to the DOJ.

Edited by Andrew Hayward

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June 14, 2025 0 comments
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