Federal prosecutors in the United States arrested a Russian cryptocurrency executive yesterday (Monday) on charges he ran a massive money laundering operation that moved more than half a billion dollars for sanctioned Russian banks through the U.S. financial system.

Russian Crypto CEO Arrested for Alleged $530 Million Money Laundering Scheme

Iurii Gugnin, 38, who lives in Manhattan and founded cryptocurrency payment companies Evita Investments and Evita Pay, faces 22 criminal counts, including wire fraud, bank fraud, sanctions violations and money laundering. He was ordered held without bail after his arraignment in Brooklyn federal court.

Prosecutors say Gugnin processed roughly $530 million in payments between June 2023 and January 2025, primarily using Tether, a popular dollar-pegged stablecoin. His clients included individuals and businesses associated with major Russian institutions, such as Sberbank, VTB Bank, Sovcombank, and Tinkoff Bank.

“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,” said John A. Eisenberg, Assistant Attorney General for National Security.

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Elaborate Deception Scheme

Court documents reveal Gugnin went to extraordinary lengths to hide his Russian connections from U.S. banks and crypto exchanges. He repeatedly told financial institutions that Evita didn't do business with Russian entities or sanctioned organizations - statements prosecutors say were completely false.

To cover his tracks, Gugnin allegedly doctored more than 80 invoices, digitally erasing the names and addresses of Russian counterparties. He also maintained personal accounts at two sanctioned Russian banks, Alfa-Bank and Sberbank, while living in the United States.

The operation wasn't just about moving money. Prosecutors say Gugnin helped facilitate the export of sensitive U.S. technology to Russian clients, including an anti-terrorism-controlled server. He also allegedly laundered funds from a Moscow supplier purchasing parts for Rosatom, Russia's state-owned nuclear energy company.

Suspicious Online Searches

Investigators found evidence Gugnin knew he was under scrutiny. His internet search history included queries like "how to know if there is an investigation against you," "money laundering penalties US," and "Iurii Gugnin criminal records."

He also visited web pages titled "am I being investigated?" and "signs you may be under criminal investigation."

Despite these apparent concerns, Gugnin continued living lavishly in Manhattan. The Wall Street Journal profiled him last fall as a high-net-worth renter paying $19,000 monthly for his apartment.

Intelligence Connections

The Justice Department says Gugnin maintained direct ties to Russian intelligence officials and contacts in Iran - both countries that don't extradite to the United States. This adds a national security dimension to what prosecutors describe as a sophisticated financial crime.

Gugnin also allegedly failed to implement required anti-money laundering protocols at his companies and didn't file suspicious activity reports as mandated by federal law. When he did register Evita Pay as a money transmitter in Florida, prosecutors say he made false statements about the company's business activities.

Severe Penalties

The charges carry severe potential penalties. Bank fraud alone carries a maximum 30-year prison sentence, while other counts range from five to 20 years. If convicted on all charges, Gugnin could face consecutive sentences extending well beyond his natural lifetime.

“The Department of Justice will not hesitate to bring to justice those who imperil our national security by enabling our foreign adversaries to sidestep sanctions and export controls,” added Eisenberg.

The case was brought through the Justice and Commerce Departments' Disruptive Technology Strike Force, an interagency effort targeting actors who help authoritarian regimes acquire critical technology.

Similar Cases

This is not the first time that foreign authorities have investigated potential money laundering involving cryptocurrency exchanges on behalf of Russia, Russian citizens, or Russian companies. FinanceMagnates.com reported a similar incident in September 2024, when an individual was charged with laundering over $1.15 billion.

Over a year ago, in late March 2024, an investigation led by the United States and the United Kingdom linked $20 billion worth of crypto transactions to Russian exchanges, allegedly used to circumvent sanctions imposed on the country following its 2022 invasion of Ukraine.