Crypto Executive Indicted for Alleged $500 Million Laundering Scheme Tied to Sanctioned Russian Banks

A federal indictment unsealed in Brooklyn reveals charges against the founder of a U.S.-based cryptocurrency payments firm, accusing him of orchestrating an elaborate international money laundering operation. Prosecutors allege that the scheme facilitated the movement of over half a billion dollars on behalf of sanctioned Russian financial institutions and other entities.

Iurii Gugnin, a 38-year-old Russian national residing in Manhattan, was apprehended and appeared in court on Monday, where he was ordered to be held without bail pending trial.

The 22-count indictment against Gugnin includes charges of wire fraud, bank fraud, violations of U.S. sanctions and export controls, money laundering, and failure to implement mandated anti-money laundering protocols.

“The defendant is accused of transforming a cryptocurrency enterprise into a clandestine conduit for illicit funds, channeling more than half a billion dollars through the U.S. financial system to assist sanctioned Russian banks and enable Russian end-users to acquire sensitive American technology,” stated Assistant Attorney General Eisenberg.

Prosecutors assert that Gugnin leveraged his companies, Evita Investments and Evita Pay, to process approximately $530 million in payments while deliberately obscuring the origin and purpose of these funds. Between June 2023 and January 2025, he allegedly funneled this money through U.S. banks and cryptocurrency exchanges, primarily utilizing Tether, a widely adopted stablecoin pegged to the U.S. dollar.

Among the reported clients were individuals and businesses with connections to sanctioned Russian entities, including prominent banks like Sberbank, VTB Bank, Sovcombank, and Tinkoff, as well as the state-owned nuclear energy corporation, Rosatom.

To execute the alleged scheme, Gugnin reportedly misrepresented the scope of his business operations, falsified compliance documentation, and provided false information to banks and digital asset platforms regarding his ties to Russia. Prosecutors claim he disguised the source of funds through shell accounts and tampered with over 80 invoices, digitally removing the identities of Russian counterparties.

Investigators also highlighted internet search queries attributed to Gugnin, which suggest an awareness of potential scrutiny. These searches reportedly included phrases such as “how to know if there is an investigation against you” and “money laundering penalties US.”

The Justice Department further indicated that Gugnin maintained direct connections with members of Russia’s intelligence service and officials in Iran – nations that do not have extradition treaties with the U.S.

He also faces accusations of aiding in the export of sensitive U.S. technology to Russian clients, including a server subject to anti-terrorism controls.

Last autumn, Gugnin was featured in a Wall Street Journal article profiling high-net-worth renters in Manhattan, where he was reportedly paying $19,000 per month for an apartment.

If convicted on the bank fraud charges alone, Gugnin faces a statutory maximum sentence of 30 years in prison. A conviction on all counts could lead to a consecutive maximum sentence significantly exceeding his lifetime.