Russian National Charged with Laundering $500M Through Crypto Firm in Sanctions Evasion Plot

A Russian national residing in New York has been indicted on 22 counts in connection with laundering over $500 million through the United States financial system, using cryptocurrency firm Evita Investments Inc to bypass sanctions and funnel illicit funds on behalf of Russian banks and entities.

Crypto Start-Up Masked as Sanctions Evasion Front

According to the unsealed indictment, 38-year-old Iurii Gugnin, also known as Iurii Mashukov and George Goognin, exploited his crypto company Evita Investments, along with its affiliate Evita Pay Inc, to orchestrate an elaborate sanctions evasion scheme. Gugnin allegedly operated the business without a valid licence, failed to implement basic anti-money laundering (AML) controls, and used false representations to mislead banks and crypto exchanges about the company’s dealings.

Operating from within the United States, Gugnin is said to have processed transactions for clients holding funds at sanctioned Russian banks such as PJSC Sberbank, PJSC Sovcombank, PJSC VTB Bank, and JSC Tinkoff Bank. The Department of Justice (DoJ) reports that Gugnin’s customers used cryptocurrencies, particularly Tether (USDT), which were then laundered through US-based bank accounts and exchanges before being converted into fiat currencies. Between June 2023 and January 2025, Evita allegedly facilitated approximately $530 million in suspicious transfers.

Obfuscation of Source, Clients & Purpose

To conceal the true nature of the transactions, Gugnin reportedly falsified invoices and tampered with documents, “whiting out” customer names and addresses. He also lied repeatedly to US financial institutions, claiming no ties to Russian entities. Yet court documents show that he held personal accounts at Russian banks under sanctions and facilitated payments for sensitive, export-controlled US technology.

Among the most concerning accusations is that Gugnin aided the procurement of high-spec servers and parts for Rosatom, the Russian state-owned nuclear firm, circumventing strict export controls put in place to limit Russia’s access to Western technology.

Failings in AML & Know-Your-Customer Controls

Though Evita Pay was registered with the Financial Crimes Enforcement Network (FinCEN) and the state of Florida as a money transmitter, Gugnin allegedly did so fraudulently, misleading state regulators about the true nature of the business. He is further accused of failing to file Suspicious Activity Reports (SARs) and deliberately ignoring AML obligations mandated by the Bank Secrecy Act.

Authorities also revealed damning evidence of intent: Gugnin allegedly conducted online searches including “money laundering penalties US” and “am I being investigated?”, suggesting a conscious effort to avoid detection.

Severe Penalties if Convicted

If found guilty, Gugnin faces up to 30 years in prison for each count of bank fraud, up to 20 years for wire fraud, sanctions violations, and money laundering, 10 years for AML failings, and five years for operating an unlicensed money transmitter and conspiracy to defraud the US.

The case is being prosecuted by Assistant US Attorney Matthew Skurnik and Trial Attorney Dallas Kaplan of the National Security Division’s Counterintelligence and Export Control Section. Asset forfeiture proceedings are being led by Assistant US Attorney Laura Mantell.

Wider Implications for Financial Institutions & Crypto Firms

This case underscores growing scrutiny on crypto-enabled financial crime and the urgent need for regulated entities to enhance due diligence, particularly in cross-border transactions involving high-risk jurisdictions. It also serves as a warning to financial intermediaries that weak compliance frameworks can be exploited by malign actors seeking to undermine global sanctions regimes.

With increasing geopolitical tension and expanded enforcement of financial sanctions, compliance officers, AML professionals and crypto exchanges alike are advised to reassess their exposure to sanctions evasion typologies, particularly those involving stablecoins and pseudo-anonymous wallets.

Read the full press release here.