- Russian man used crypto firms to launder over $530 million.
- Gugnin faked documents, misled banks, and broke money laundering laws.
- Officials say crypto crime reveals major gaps in current regulations.
The U.S. Department of Justice (DOJ) announced serious charges against a Russian national named Iurii Gugnin. Gugnin, who was living in New York, has been indicted on 22 criminal counts. He is blamed for laundering $530 million through the two crypto companies, Evita Investments Inc. and Evita Pay Inc.
Crypto Executive Skipped AML Rules, Faked Invoices
The DOJ claims Gugnin worked with foreign clients, mostly people from Russia, to funnel funds and goods that didn’t comply with U.S. sanctions and export laws. Specifically, Tether (USDT) was used by him to hide the source of the money. Thanks to these actions, he is thought to have gotten U.S. banks and other financial institutions to believe what he said.
For an estimated two years from June 2023 to January 2025, Gugnin is said to have moved the money through the U.S. financial system through his companies. The money had mostly been invested in cryptocurrency, and USDT was the largest part of that. Money went through the scheme and reached banks in Russia that were already under sanctions by the United States.
Officially, officials say that Gugnin made bogus documents and fooled the banks with lies to achieve this. He mentioned to banks that his companies were not dealing with Russians or firms placed under sanctions. Nevertheless, most of Bill Browder’s clients in Russia were associated with banks such as Sberbank, Tinkoff, VTB, and Sovcombank.
Besides, in many cases, Gugnin allegedly helped Russian clients obtain U.S. technology that was officially restricted, such as specific electronics and servers. It is said that certain shipments were supposed to go to Rosatom, Russia’s nuclear energy authority. Gugnin made it harder for people to trace him by removing the information of Russian clients from invoices.
As well, he refused to obey the laws surrounding money laundering. He did not make any suspicious activity reports as stipulated by the Bank Secrecy Act. Despite saying he followed all the security and compliance rules, he never abided by them, these investigators claim.
Crypto Crime Case Highlights Loopholes in Regulation
Interestingly, Gugnin also looked online to see if there were any signs of being investigated. He searched the internet for information on the penalties related to money laundering in the U.S. and ways to identify if you are under investigation. In the opinion of officials, this displays that he understood his actions were against the law.
John Eisenberg, Assistant Attorney General, pointed out that the defendant funneled over half a billion dollars for Russian banks and customers by using a crypto company. The Attorney General mentioned that people aiding U.S. adversaries escape sanctions will be held responsible by the DOJ.
Also, the FBI’s Roman Rozhavsky added that this incident makes a strong point. Although criminals use cryptocurrency to hide, law enforcement can still catch them and make them pay.
The police have arrested Gugnin in New York. The court could give him harsh penalties if it finds him guilty. He may receive a sentence of up to 30 years’ imprisonment for every fraud charge against a bank. There is a possibility that wire fraud, conspiracy, and AML violations would result in years more time in jail for him.
It is necessary to recall that he has not been found guilty. In the United States, he is thought to be innocent until the court finds him guilty of certain acts. At the same time, this situation points out that more and more people may use cryptocurrency to evade laws and rules.
