Crypto Founder Arrested for Fraud

The founder of a cryptocurrency company, Evita Pay, has been arrested in New York for allegedly trying to gather around $530 million from a licensed Russian bank in the U.S. This move supposedly allowed Russian clients access to highly sensitive American technology.

Iurii Gugnin faces a 22-count indictment, which includes serious charges like wire fraud, bank fraud, and money laundering. The indictment was announced by the U.S. Department of Justice on Monday.

If found guilty, Gugnin could find himself spending a long time behind bars. This case adds to the growing list of instances where cryptocurrency is being linked to attempts to circumvent sanctions and launder money.

The DOJ claims that Gugnin operated a broad money laundering scheme from June 2023 to January 2025, processing transactions in Stablecoin Tether (USDT) for Russian clients connected to sanctioned banks like Sberbank, VTB, Sovcombank, and Tinkoff.

National Security Advisor John A. Eisenberg stated that Gugnin funneled approximately $530 million through the American financial system, turning his crypto business into a “secret pipeline of dirty money,” which allegedly helped Russian banks and end-users obtain sensitive U.S. technology.

The Department of Justice will not hesitate to bring those to trial who risk our national security by allowing our foreign enemies to evade sanctions and export controls.

Reports indicate that Gugnin deceived a U.S. bank about Evita’s connections to Russia, manipulating invoices to conceal client identities while disregarding anti-money laundering regulations even after registering Evita Pay as a remittance business in Florida.

Cointelegraph reached out to Evita for comments but didn’t receive an immediate reply.

Suspicion of Investigation

Interestingly, Gugnin reportedly made online searches including terms like “I’m under investigation” and “signs you’re being investigated.”

He seems to have looked for ways to find out if he was being scrutinized, asking questions like, “What is the best way to know if you’re being investigated?”

Potential Consequences

Gugnin could face life in prison due to his failure to submit suspicious activity reports and his inadequate implementation of a money laundering prevention program over the years. Each count of wire fraud could result in up to ten years of imprisonment.

The penalties can be severe; the founders of cryptocurrency companies could also face up to five years for conspiracy to commit fraud against the U.S.