NY Crypto CEO Charged for Laundering $530M for Russian Banks

  • U.S. authorities charged Russian national Iurii Gugnin with bank fraud and sanctions evasion over alleged crypto-based money laundering schemes.
  • Prosecutors say Gugnin ran a New York crypto company that helped Russian banks bypass international sanctions and moved about $530 million through U.S. financial systems.
  • Gugnin’s operations reportedly enabled transfers for sanctioned Russian banks and companies, including Sberbank, VTB Bank, and Rosatom.
  • Each bank fraud charge may carry up to 30 years in prison; other offenses may add sentences of up to 20 years.
  • Officials and experts warn that crypto continues to be used to sidestep sanctions, despite efforts to shut down illegal Russian-linked platforms.

U.S. federal prosecutors have arrested and charged Russian citizen Iurii Gugnin, founder of New York-based crypto payment companies Evita Investments Inc. and Evita Pay Inc., accusing him of laundering more than $500 million through U.S. banks. Authorities allege that between June 2023 and January 2025, Gugnin operated his crypto businesses as an illegal route for Russian banks and entities to evade international sanctions.

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According to the U.S. Department of Justice, Gugnin processed around $530 million by routing funds for sanctioned Russian banks such as Sberbank, VTB Bank, and Tinkoff Bank, using stablecoin Tether (USDT). The scheme also reportedly assisted Russian customers in purchasing restricted U.S. technology and nuclear materials, attempting to hide the involvement of Russian clients.

Prosecutors allege that Gugnin misled financial institutions by claiming his companies did not engage with Russian or sanctioned entities, while personally holding accounts at Russian banks and residing in the United States. Court records show Gugnin conducted internet searches like “how to know if there is an investigation against you,” and “money laundering penalties US.” The Justice Department’s press release provides more details.

The case highlights concerns about digital currency being used to avoid sanctions, especially after Russia’s 2022 invasion of Ukraine. Chengyi Ong of Chainalysis stated, “As an alternative payment channel, cryptocurrency has been used—and will likely continue to serve—as a tool to sidestep sanctions.” Chainalysis reported that sanctioned jurisdictions received $15.8 billion in crypto in 2024, roughly 39% of all illegal crypto transactions worldwide.

Recent law enforcement actions have disrupted Russian-linked crypto activity. Police in Germany seized 47 Russian-language no-KYC exchanges as part of Operation Final Exchange. U.S. and international agencies also targeted large platforms like Cryptex and Garantex, which processed major transaction volumes before their takedown.

Investigators warn that sanctioned crypto entities often attempt to rebrand in order to continue operations. Andrew Fierman of Chainalysis explained, “The broader issue here is that rebranding has become a familiar tactic for sanctioned crypto entities.” Blockchain transparency and increasing enforcement are considered key factors in tracking and reducing illegal crypto activity.

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