Crypto exec ran a ‘covert pipeline for dirty money,’ DOJ says

A crypto founder has been arrested in New York for allegedly using his crypto firm, Evita Pay, to funnel around $530 million into the US from sanctioned Russian banks to help Russians access highly sensitive American technology.

Iurii Gugnin was hit with a 22-count indictment and will face charges related to wire and bank fraud, money laundering and operating an unlicensed money transmitting business, among others, the US Department of Justicesaidon Monday.

If convicted, Gugnin could spend life behind bars. It’s the latest case involving the use of crypto to attempt to bypass sanctions and launder funds.

The DOJ alleges that Gugnin operated a sprawling money laundering scheme from June 2023 to January 2025, processing stablecoin TetherUSDT$1.00Tether USDtChange (24h)0.02%Market Cap$139.35BVolume (24h)$62.93BView Moretransactions on behalf of Russian clients tied toblacklisted banks like Sberbank,VTB, Sovcombank and Tinkoff.

According to John A. Eisenberg, assistant attorney general for national security, Gugnin turned his crypto company into a “covert pipeline for dirty money,” moving around $530 million through the US financial system to aidsanctioned Russian banksand help Russian end-users acquire sensitive American technologies:

Gugnin allegedly lied to US banks about Evita’s Russian ties, manipulated invoices to hide client identities and ignored Anti-Money Laundering rules despite registering Evita Pay as a money transmitting business in Florida using false statements, the DOJ said.

Cointelegraph reached out to Evita Pay for comment but didn’t receive an immediate response.

Crypto founder suspected he was under investigation

Gugnin also allegedly conducted web searches like: “Am I being investigated” and “signs you may be under criminal investigation,” according to the DOJ, which claims those searches signaled an awareness that he was breaking the law.

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“What are the best ways to find out if you’re being investigated and what can someone do when they think they might be under investigation,” Gugnin also allegedly searched on the web.

Gugnin faces life in prison

Gugnin faces up to 30 years in prison for each count ofbank fraud,a maximum of 20 years for each wire fraud count, and up to 10 years for failing to implement an effective Anti-Money Laundering program and failure tofile suspicious activity reports.

The crypto founder could receive up to five years in prison for conspiracy to defraud the US.

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