Crypto CEO Accused of Laundering $500 Million Linked to Sanctioned Russian Banks
Published: Mon, Jun 9, 2025 | Updated: Mon, Jun 9, 2025
By: MacKenzie Sigalos
Federal prosecutors in Brooklyn have charged Iurii Gugnin, the founder of a cryptocurrency payments company, with orchestrating an international money laundering scheme that allegedly facilitated the transfer of over half a billion dollars on behalf of sanctioned Russian banks. The charges were announced following Gugnin’s arrest and arraignment on Monday.
Details of the Charges
Iurii Gugnin, a 38-year-old Russian national residing in Manhattan, faces a 22-count indictment. The charges include wire fraud, bank fraud, violation of U.S. sanctions and export controls, money laundering, and failing to implement legally mandated anti-money laundering protocols. During a press briefing, Assistant Attorney General Eisenberg stated, "The defendant is charged with turning a cryptocurrency company into a covert pipeline for dirty money, moving over half a billion dollars through the U.S. financial system to aid sanctioned Russian banks and help Russian end-users acquire sensitive U.S. technology."
Prosecutors allege that from June 2023 to January 2025, Gugnin utilized his companies—Evita Investments and Evita Pay—to process approximately $530 million. He purportedly concealed the origins and purposes of these funds, primarily using tether, a widely recognized dollar-pegged stablecoin, to funnel the money through U.S. banks and cryptocurrency exchanges.
Involvement with Sanctioned Entities
According to court documents, Gugnin’s clientele included individuals and businesses affiliated with sanctioned Russian institutions, such as Sberbank, VTB Bank, Sovcombank, Tinkoff, and the state-owned nuclear energy company Rosatom. Prosecutors allege he misrepresented the scope of his business operations, falsified compliance documentation, and provided false information to banks and digital asset platforms regarding his connections to Russia.
Furthermore, investigators report that Gugnin used shell accounts to obscure the source of the funds and allegedly manipulated more than 80 invoices to erase the identities of Russian counterparties from transaction records.
Ominous Connections
The Justice Department has claimed that Gugnin maintained connections with members of Russia’s intelligence service and high-ranking officials in Iran—both of which are countries that do not extradite to the United States. Additionally, he is accused of facilitating the export of sensitive U.S. technology to Russian clients, including a server subject to anti-terrorism controls.
Prosecutors have highlighted the presence of suspicious internet queries from Gugnin, such as "how to know if there is an investigation against you" and "money laundering penalties US," which suggest his awareness of potential legal scrutiny.
Legal Consequences
If convicted, Gugnin faces serious legal repercussions. For bank fraud charges alone, he could receive a statutory maximum sentence of 30 years in prison. However, if found guilty of all charges, he could face a combined maximum sentence that extends well beyond a lifetime.
Gugnin’s relatively recent notoriety includes a profile in a Wall Street Journal article about high-net-worth renters in Manhattan, where he reportedly paid $19,000 per month for his apartment.
As the case unfolds, it highlights growing concerns regarding the intersection of cryptocurrency and illicit financial activities, particularly involving international sanctions and state actors.
The developments in this case are closely monitored, reflecting ongoing efforts by authorities to combat financial crimes in the rapidly evolving landscape of digital currencies.
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