Russian Crypto Founder Arrested: $530M Laundering Scheme
Russian Crypto Founder Arrested for $530M Laundering Scheme
Iurii Gugnin, founder of the cryptocurrency firm Evita Pay, was arrested in New York and charged with a massive money laundering operation. The U.S. Department of Justice alleges Gugnin funneled approximately $530 million into the U.S. from sanctioned Russian banks, facilitating access to sensitive American technology for Russian entities.
The 22-count indictment includes charges of wire fraud, bank fraud, money laundering, and operating an unlicensed money transmitting business. If convicted, Gugnin faces a potential life sentence.
Details of the Alleged Scheme
According to the DOJ, Gugnin’s scheme, operating from June 2023 to January 2025, processed Tether (USDT) transactions for clients linked to blacklisted Russian banks, including Sberbank, VTB, Sovcombank, and Tinkoff. He allegedly lied to U.S. banks about Evita Pay’s Russian connections, manipulated invoices to obscure client identities, and disregarded anti-money laundering (AML) regulations despite registering the firm in Florida.
Assistant Attorney General John A. Eisenberg stated that Gugnin transformed Evita Pay into a "covert pipeline for dirty money," enabling sanctioned Russian banks and individuals to acquire sensitive American technologies. The DOJ emphasized its commitment to prosecuting those who undermine national security by circumventing sanctions and export controls.
Evidence of Awareness
The DOJ presented evidence suggesting Gugnin was aware of the illegality of his actions. They cited web searches he allegedly conducted, including: "Am I being investigated?" and "Signs you may be under criminal investigation."
Potential Penalties
Gugnin faces a maximum of 30 years in prison for each count of bank fraud, 20 years for each wire fraud count, and up to 10 years for AML violations and failure to file suspicious activity reports. He could also receive up to five years for conspiracy to defraud the U.S.
This case highlights the growing concern regarding the use of cryptocurrencies to circumvent sanctions and launder money. Codeum, a leader in blockchain security and development, offers services including smart contract audits, KYC verification, and custom smart contract development to mitigate such risks. We are committed to fostering a secure and transparent blockchain ecosystem.