Crypto Founder Arrested for $530 Million Sanctions-Busting Scheme: Report

• Evita Pay founder Gugnin arrested for allegedly funneling $530 million through crypto for sanctioned Russian banks.
• DOJ charges Gugnin with wire fraud, money laundering, and operating an unlicensed business amid security concerns.
• Investigators reveal Gugnin’s awareness of his illegal actions, backed by suspicious web searches on criminal investigations.

Iurii Gugnin, the founder of Evita Pay, has been arrested in New York because his company is accused of bringing over $530 million from sanctioned Russian banks to the U.S. The DOJ is charging him for wire fraud, bank fraud, money laundering, and for operating a business that doesn’t have a license for money transmission. His punishment could be up to life behind bars if he is found guilty.

The DOJ said that Gugnin facilitated stablecoin Tether transactions for Russian customers and some Russian banks that were included on the list of sanctioned entities, such as Sberbank, VTB, Sovcombank, and Tinkoff. Over the period from June 2023 to January 2025, he is reported to have helped Russia get sensitive American technologies by using his company to avoid U.S. sanctions.

Evita Pay’s Role in Eroding U.S. Sanctions Under Scrutiny

In a statement, John A. Eisenberg, Assistant Attorney General for National Security, stated that the operation put the country’s security at risk. The AG pointed out that the DOJ will not allow individuals to take actions that support foreign foes in ignoring U.S. sanctions and export controls. According to the allegations, Gugnin undercut the United States in stopping Russia from getting vital technologies.

The case is centered around U.S. banks being tricked by Gugnin about Evita Pay’s relations to Russia. He supposedly changed invoices to hide who his clients were and not follow Anti-Money Laundering (AML) rules. The DOJ believes that although he registered Evita Pay as a money-transmitting business in Florida, he made false answers when completing the registration paperwork.

Gugnin’s Crypto Crimes Spark DOJ Investigation

The DOJ added that Gugnin realized that his actions were part of criminal activity. Investigators found out that he looked up information on being investigated by typing things like “Am I being investigated?” and queries about possible signs of criminal investigation. According to the searches, Gugnin was aware that he was acting illegally.

He can receive severe sentences. Sentences for bank fraud can add up to 30 years in prison for every count. The most severe penalty for wire fraud is 20 years, and failing to follow AML regulations could result in imprisonment of up to 10 years. Moreover, the founder may be charged with conspiracy to defraud the United States and could face up to five years in prison.

Cryptocurrencies have attracted greater scrutiny for facilitating the evasion of international restrictions and the laundering of funds. Authorities are investigating platforms such as Evita Pay, a crypto pounder, as they attempt to prevent any illegal financial activity. This swift action from the DOJ clearly demonstrates to the public that cryptocurrency should not be used for illicit purposes.

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