A Russian citizen has been arrested for using a crypto firm as a front to send money to sanctioned Russian banks. The accused allegedly moved over $530 million in Tether to the US. He faces up to 30 years in prison for each count of bank fraud.
The US Department of Justice charged Iurii Gugnin, a 38-year-old Russian living in New York, with allegedly leading a sophisticated money-laundering operation through crypto companies. Gugnin was arrested and presented in court this Monday, according to a statement from the prosecutor’s office.
Gugnin is accused of using his companies, Evita Investments and Evita Pay, to move over $530 million in funds into the US financial system. The authorities claim these transfers happened between June 2023 and January 2025, mainly using the Tether stablecoin.
The accused allegedly used bank accounts in Manhattan to receive these funds, which, according to the accusation, came from foreign clients, including individuals with accounts in sanctioned Russian banks. Gugnin supposedly deliberately concealed the origin of the money, providing false information to both banks and crypto exchange platforms.
“The accused is being prosecuted for turning a crypto company into a covert channel for dirty money, moving over half a billion dollars through the US financial system to help sanctioned Russian banks and facilitate the acquisition of sensitive US technology by Russian users,” said John A. Eisenberg, Deputy Assistant Attorney General for National Security.
Gugnin operated Evita Investments and Evita Pay with total control: he was the founder, president, treasurer, and compliance officer. This allowed him to manage all operational and legal aspects of the entities, enabling him to keep illegal activities hidden.
The companies presented themselves as providers of international financial services, but according to prosecutors, their real function was to disguise the origin and destination of cryptocurrencies, which were then converted into dollars and deposited into US banks.
The use of Tether is particularly relevant in this case, as this stablecoin is linked to the US dollar and is commonly used as a bridge to move capital without volatility. However, the relative anonymity of its use on certain platforms can facilitate money-laundering operations if there are no adequate controls.
Each count of bank fraud could result in a maximum sentence of up to 30 years in prison. Additionally, there are potential additional penalties for conspiring to defraud the government and for violating federal regulations designed to prevent foreign actors from accessing critical US technology.
Although no verdict has been issued, the case highlights growing concerns among US authorities about the use of cryptocurrencies in illicit financing activities, especially in sensitive geopolitical contexts such as the sanctions imposed on Russia after its invasion of Ukraine.
The Department of Justice has not yet revealed whether other individuals are under investigation or if Gugnin will cooperate with the authorities. It is also unclear what type of US technology was being acquired by Russian clients through these mechanisms.
This case could generate pressure on Congress and other regulatory entities to establish more rigorous frameworks for the use of stablecoins in the US. Various voices have pointed out the need to more closely monitor international transactions that use dollar-pegged cryptocurrencies to prevent their use for illicit purposes.
Federal authorities have increased their actions against actors who facilitate access to the US financial system for sanctioned countries, particularly through emerging technologies like blockchain and crypto assets.
This legal process adds to a growing list of cases in which cryptocurrencies like Tether, despite their legitimate purposes, have been used as tools for financial evasion in delicate international contexts.
The case underscores the importance of proper regulations for cryptocurrency operations to prevent their use in illicit activities. As the use of cryptocurrencies continues to grow, it is essential for authorities to stay vigilant and adapt regulations to prevent their use in money-laundering operations and other illegal activities.
Sources:
– US Department of Justice
– Report by The Block
– Blaze Trends