Iurii Gugnin, the founder of Evita Pay, was arrested in New York for allegedly laundering around $530 million through his cryptocurrency firm, utilizing sanctioned Russian banks to undermine U.S. interests.

Federal prosecutors claim that from June 2023 to January 2025, Gugnin operated a sophisticated international money laundering operation through his companies, Evita Investments and Evita Pay.

The indictment includes 22 counts of wire and bank fraud, money laundering, and violations of U.S. sanctions, with prosecutors alleging that Gugnin concealed the origins and purposes of the funds, primarily using the dollar-pegged stablecoin Tether.

This case underscores ongoing concerns about the role of cryptocurrency in facilitating illicit financial activities, especially in relation to sanctioned countries.

Gugnin's clients reportedly included individuals and businesses linked to major sanctioned Russian institutions such as Sberbank and VTB Bank.

He is accused of deceiving U.S. banks about Evita's connections to Russia, falsifying compliance documentation, and manipulating invoices to hide the identities of his Russian clients.

Additionally, Gugnin is charged with exporting sensitive U.S. technology to Russian clients, including a server controlled by anti-terrorism regulations.

He faces charges for operating an unlicensed money transmitting business and failing to implement an effective anti-money laundering compliance program.

Prosecutors argue that Gugnin's actions not only violated U.S. laws but also posed significant risks to national security.

John A. Eisenberg, assistant attorney general for national security, described Gugnin's operation as a 'covert pipeline for dirty money,' emphasizing the DOJ's commitment to national security.

If convicted, Gugnin could face severe penalties, including up to 30 years for each bank fraud count and potentially life in prison due to the severity of the charges.

The legal proceedings against Gugnin may have broader implications for the cryptocurrency industry, particularly concerning compliance with sanctions and anti-money laundering regulations.