SEC v. Gotbit Consulting LLC a/k/a Gotbit Hedge Fund and Fedor Kedrov — U.S. Securities and Exchange Commission Litigation Release No. 26598, dated August 3, 2026.
The SEC charged Gotbit Consulting LLC with fraud and market manipulation for allegedly manipulating the market of a crypto asset through wash trading and other wash trading schemes. Gotbit consented to a settlement, which includes permanent injunctions and a bar from participating in securities offerings. Separately, Gotbit pleaded guilty to wire fraud and conspiracy to commit market manipulation in a parallel criminal case and was sentenced to probation.
Imagine someone is selling a popular toy. To make it look like everyone wants it, they secretly buy and sell the toy back and forth with themselves many times. This makes it seem like there's a lot of demand, tricking real buyers into thinking it's a hot item. The SEC stepped in and stopped this company from doing this and from being involved in selling any other investments.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On July 28, 2026, the SEC filed a proposed final judgment in the U.S. District Court for the District of Massachusetts as to the Commission’s claims against Gotbit Consulting LLC a/k/a Gotbit Hedge Fund. If approved by the court, the proposed final judgment would settle the Commission’s previously-filed fraud and market manipulation claims against Gotbit. The Commission previously filed a notice of voluntary dismissal as to the pending claims against Fedor Kedrov. The SEC’s complaint, filed in October 2024, alleged that Gotbit engaged in a scheme to manipulate the market for a crypto asset that was offered and sold subject to an investment contract, including by generating artificial trading volume for the crypto asset. The SEC alleged that Gotbit manipulated the market for the crypto asset by self-trading (commonly referred to as “wash trading”) or by engaging in other trading practices that likewise served no economic purpose. As described in the complaint, wash trading generally refers to trades that do not lead to a change in beneficial ownership, but create the false impression of market interest in the underlying asset. Gotbit consented to the entry of a final judgment, subject to court approval, that would permanently enjoin Gotbit from violating Section 17(a)(1) and (3) of the Securities Act of 1933 and Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder, and from participating, directly or indirectly, in any issuance, purchase, offer, or sale of any securities. In a parallel criminal proceeding, U.S. v. Gotbit Consulting LLC et al., No. 24-cr-10190 (D. Mass.), Gotbit pleaded guilty to wire fraud and conspiracy to market manipulation and wire fraud, and, in June 2025, Gotbit was sentenced to five years’ probation. The SEC’s investigation was conducted by Amy Harman Burkart, Ivan Panchenko, Jeffrey Cook, and John McCann in the SEC’s Boston Regional Office, as well as Joy Guo of the Division of Enforcement’s Cyber and Emerging Technologies Unit (CETU). They were supervised by Amy Gwiazda and Laura D’Allaird of CETU, Michael Brennan, and Celia Moore and John T. Dugan of the Boston Regional Office. The SEC's litigation was led by Amy Harman Burkart.
Named in this action: Gotbit Consulting LLC.