US authorities have charged crypto entrepreneur Iurii Gugnin with operating a $500 million money laundering scheme through his crypto companies, helping sanctioned Russian banks and entities bypass international financial restrictions.
Crypto CEO Accused of Running Sanctions Evasion Pipeline
Federal prosecutors have indicted the founder of two New York-based cryptocurrency firms for allegedly laundering over $500 million through the US financial system while enabling sanctioned Russian financial institutions to evade international restrictions.
Iurii Gugnin, a 38-year-old Russian national residing in New York, was arrested on Monday and now faces a 22-count indictment for his alleged involvement in a sophisticated financial crime network. The charges include wire and bank fraud, conspiracy to defraud the United States, and violations of the International Emergency Economic Powers Act (IEEPA).
Links to Sanctioned Russian Banks
According to the US Department of Justice (DOJ), Gugnin operated Evita Investments Inc. and Evita Pay Inc. as fronts for laundering illicit funds on behalf of Russian entities restricted under international sanctions. Between June 2023 and January 2025, Gugnin is accused of processing transactions for major Russian banks, including Sberbank, VTB Bank, and Tinkoff Bank.
Prosecutors claim Gugnin not only conducted these illicit financial operations but also maintained personal accounts with sanctioned banks like JSC Alfa-Bank and Sberbank while living in the United States. These activities reportedly helped Russian clients access sensitive US-origin technology and nuclear-related materials in defiance of export controls.
Deceptive Practices and Financial Manipulation
Court filings allege that Gugnin misled US banks by falsely claiming that his companies had no dealings with Russian or sanctioned entities. Meanwhile, behind the scenes, he allegedly laundered cryptocurrency, primarily Tether (USDT), through various wallets and US-based bank accounts. The funds were converted into dollars and used to facilitate payments via Manhattan-based financial institutions.
The Justice Department described Gugnin’s operation as “a covert pipeline for dirty money,” with United States Attorney Joseph Nocella, Jr., stating,
“As alleged, Gugnin came to the United States and set up a money laundering operation under the guise of a cryptocurrency start-up, which he then used to evade sanctions and export controls and defraud US financial institutions.”
Severe Legal Consequences Ahead
If convicted, Gugnin faces steep penalties. Each count of bank fraud alone carries a maximum sentence of 30 years in prison, with additional charges adding up to 20 years each. The case underscores escalating concerns among US national security officials over how crypto infrastructure is being exploited to bypass sanctions intended to cripple Russia’s wartime economy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.