Feds Charge Crypto Founder With Evading U.S. Sanctions, Laundering $500M

Federal prosecutors have charged a New York-based crypto company founder with laundering more than $500 million through the U.S. financial system while helping sanctioned Russian banks circumvent international restrictions.

Iurii Gugnin, 38, a Russian citizen and founder of crypto payment companies Evita Investments Inc. and Evita Pay Inc., was arrested Monday on a 22-count indictment alleging he turned his businesses into what prosecutors called “a covert pipeline for dirty money.”

Gugnin facilitated transactions with sanctioned Russian banks including Sberbank, VTB Bank, and Tinkoff Bank between June 2023 and January 2025, according to the Justice Department’s press release.

His operations allegedly helped Russian customers acquire sensitive U.S. technology and nuclear materials while evading international sanctions.

The defendant faces severe penalties, with each bank fraud count carrying a maximum 30-year prison sentence and additional charges punishable by up to 20 years imprisonment.

“How to know if there is an investigation against you”

The case points to mounting concerns among national security officials about how crypto infrastructure is being weaponized to undermine sanctions designed to cripple Russia’s war economy in Ukraine.

Gugnin is accused of moving approximately $530 million through U.S. banks and crypto exchanges, primarily using the stablecoin Tether (USDT).

The indictment claims he repeatedly deceived financial institutions, falsely asserting that Evita “did not conduct business with entities in Russia and did not deal with sanctioned entities.”

However, prosecutors say he maintained personal accounts at sanctioned Russian banks JSC Alfa-Bank and Sberbank while residing in the United States.

The scheme reportedly involved foreign customers sending Gugnin crypto, which he then laundered through wallets and U.S. bank accounts, converting to dollars and making payments via Manhattan banks on their behalf.

Prosecutors say Gugnin facilitated payments for export-controlled U.S. tech servers and laundered funds for Rosatom, Russia’s state nuclear company, allegedly “whiting out” Russian customer details on invoices to conceal the activities.

Court documents reveal he conducted internet searches for terms including, “how to know if there is an investigation against you,” “money laundering penalties US,” and “penalties for sanctions violations EU luxury goods,” the press release said.

Crypto and sanctions

The Gugnin case represents the latest in an sweeping series of U.S. actions targeting Russian cryptocurrency operations that processed billions in illicit transactions.

“Since the 2022 invasion of Ukraine, the international community has deployed a broad range of financial sanctions against Russia, severely limiting its access to the traditional financial system,” Chengyi Ong, Head of APAC Policy at Chainalysis, told Decrypt. “As an alternative payment channel, cryptocurrency has been used—and will likely continue to serve—as a tool to sidestep sanctions.”

Sanctioned jurisdictions received $15.8 billion in crypto in 2024, accounting for about 39% of all illicit crypto transactions globally, according to a February report by blockchain analytics firm Chainalysis.

Ong noted that Russia’s 2023 legalization of crypto for international payments reflected this shift, though traditional evasion tactics like shell companies remain common.

And for her, blockchain’s inherent transparency provides a crucial advantage in combating such schemes.

“Improved compliance programs supported by blockchain analysis have contributed to a measurable decline in exchange interactions with sanctioned entities, demonstrating the effectiveness of data-driven de-risking strategies,” Ong said.

Recent enforcement actions have shut down multiple Russian-linked crypto platforms, including 47 Russian-language no-KYC exchanges seized by German police in “Operation Final Exchange” and Russia-based Cryptex, which processed over $5.88 billion since 2018.

In March, international agencies seized the sanctioned Russian exchange Garantex, which had handled over $100 billion in transactions and accounted for 82% of all crypto volumes associated with sanctioned entities at its peak, according to Chainalysis data.

Blockchain intelligence firm TRM Labs recently concluded that newly-launched exchange Grinex is likely a rebrand of Garantex, with the new platform onboarding former Garantex users and redistributing their assets through ruble-pegged stablecoin A7A5.

“The broader issue here is that rebranding has become a familiar tactic for sanctioned crypto entities,” Andrew Fierman, Head of National Security Intelligence at Chainalysis, then told Decrypt.