tl;dr
Federal prosecutors charged Iurii Gugnin, founder of New York-based crypto companies Evita Investments Inc. and Evita Pay Inc., with laundering over $500 million through the U.S. financial system to help sanctioned Russian banks evade international restrictions. Gugnin allegedly facilitated transact...
Federal prosecutors have charged Iurii Gugnin, founder of New York-based crypto firms Evita Investments Inc. and Evita Pay Inc., with laundering over $500 million through the U.S. financial system to help sanctioned Russian banks evade international restrictions. Gugnin allegedly facilitated transactions with major Russian banks, including Sberbank, VTB Bank, and Tinkoff Bank, from June 2023 to January 2025, assisting Russian customers in acquiring sensitive U.S. technology and nuclear materials while disguising these illegal activities.
The indictment accuses Gugnin of using stablecoin Tether to launder funds and deceiving financial institutions by falsely denying business dealings in Russia or with sanctioned entities. Prosecutors state he maintained personal accounts at sanctioned Russian banks despite residing in the United States. His scheme involved receiving cryptocurrency from foreign customers, converting it to U.S. dollars, and making payments via Manhattan banks on their behalf. He also allegedly facilitated payments tied to Russia's state nuclear company, Rosatom, while concealing customer details to evade detection.
This case underscores growing national security concerns about cryptocurrency being leveraged to bypass sanctions targeting Russia’s war economy amid the ongoing conflict in Ukraine. Gugnin faces multiple charges, including bank fraud and sanctions violations, with potential prison sentences of up to 30 years for each count.
The investigation forms part of a broader U.S. crackdown on Russian-affiliated crypto platforms, which have processed billions in illicit transactions. In 2024 alone, sanctioned jurisdictions received approximately $15.8 billion in cryptocurrency, accounting for nearly 39% of all illicit crypto flows worldwide. Authorities have acted against numerous Russian-linked platforms, revealing tactics like rebranding to circumvent sanctions and maintain operations.
Experts highlight that while cryptocurrency offers sanctioned entities an alternative payment channel, blockchain’s transparency also equips regulators with powerful tools to detect and disrupt such schemes. Enhanced compliance and data-driven strategies have contributed to a decline in sanctioned entities’ ability to interact with regulated exchanges, signaling progress in enforcement efforts.
The Gugnin indictment and related actions serve as a stark reminder of the ongoing cat-and-mouse game between regulators and illicit actors exploiting crypto infrastructure. As international sanctions against Russia persist, vigilance over cryptocurrency’s role in the global financial system remains crucial to prevent abuse and uphold the integrity of sanctions regimes.