Federal prosecutors have unveiled one of the most sophisticated cryptocurrency money laundering schemes in recent history. Regulators charged Iurii Gugnin, founder of US-based crypto payments companies Evita Investments and Evita Pay, with orchestrating a massive operation that allegedly moved $530 million on behalf of sanctioned Russian banks and entities.
The 38-year-old Russian national, who was living a lavish lifestyle in a $19,000-per-month Manhattan apartment, now faces potential life imprisonment after being arrested and ordered held without bail.
The charges paint a picture of a brazen criminal enterprise that exploited the crypto ecosystem to circumvent international sanctions and facilitate illicit financial flows between Russia and the United States.
Between June 2023 and January 2025, Gugnin allegedly transformed his legitimate-appearing payment companies into what prosecutors describe as “a covert pipeline for dirty money,” primarily using Tether’s USDT stablecoin to obscure transaction trails.
As covered by CNBC, the indictment reveals the staggering scope of Gugnin’s alleged operation, which prosecutors say served clients connected to Russia’s most prominent sanctioned financial institutions, including Sberbank, VTB Bank, Sovcombank, Tinkoff, and the state-owned nuclear energy giant Rosatom.
This client roster represents some of the most strategically important entities in Russia’s financial and energy sectors, institutions specifically targeted by Western sanctions following Russia’s invasion of Ukraine.
Elaborate Crypto Deception
The sophistication of Gugnin’s alleged crypto deception operation is remarkable in its scope and audacity. Prosecutors allege he systematically misrepresented the nature of his business to banks and cryptocurrency exchanges, falsified compliance documentation, and digitally altered over 80 invoices to remove identifying information about Russian counterparties.
Investigators discovered revealing internet searches on Gugnin’s devices that indicate his awareness of mounting scrutiny. Queries including “how to know if there is an investigation against you” and “money laundering penalties in the US” suggest he understood the legal jeopardy his activities created.
Despite this apparent awareness, he continued operating the alleged crypto scheme until his arrest, demonstrating either remarkable confidence in his ability to evade detection or desperation to maintain the lucrative operation.
The Justice Department has revealed that Gugnin maintained direct connections with members of Russia’s intelligence services and officials in Iran—countries that notably do not extradite individuals to the United States.
Maximum Penalties Sought
The potential consequences facing Gugnin underscore the gravity of the charges against him. If convicted solely on bank fraud charges, he faces a statutory maximum sentence of 30 years in prison.
However, prosecutors indicate that conviction on all counts could result in consecutive sentences extending far beyond his natural lifetime, effectively ensuring he would never be released from federal custody.
The case highlights ongoing vulnerabilities in the crypto ecosystem that enable sophisticated actors to exploit digital assets for illicit purposes. By routing funds through various US banks and crypto exchanges while using Tether’s USDT stablecoin to obscure transaction origins, Gugnin allegedly demonstrated how bad actors can abuse the relative anonymity and cross-border capabilities of digital assets.