Evita Pay used USDT to funnel cross-border funds.
Purchasers included Sberbank, VTB Financial institution, Sovcombank, and Rosatom.
22-count indictment contains cash laundering, wire fraud.
In a sweeping indictment that highlights rising enforcement round sanctions evasion and crypto misuse, US federal prosecutors have charged Russian nationwide Iurii Gugnin with operating a classy cross-border fraud and cash laundering scheme by means of his crypto platform, Evita.
Between June 2023 and January 2025, Gugnin allegedly processed over $530 million by way of US banks and cryptocurrency providers to bypass sanctions and finance Russian establishments, together with a number of blacklisted banks and a state-owned vitality agency.
The Division of Justice (DOJ) arrested Gugnin on Monday in New York, the place he had been residing in a luxurious Manhattan condo costing $19,000 a month.
He now faces a 22-count federal indictment that features wire fraud, conspiracy to defraud the US, violation of export controls, and a number of counts of cash laundering. If convicted, Gugnin may resist 30 years in jail for essentially the most extreme fees.
Sanctioned Russian banks used Evita for hidden crypto transfers
Gugnin’s firm, Evita, is accused of funnelling funds from international shoppers by means of American monetary infrastructure utilizing stablecoins like USDT.
Prosecutors mentioned the transactions had been made on behalf of sanctioned Russian entities, together with Sberbank, VTB Financial institution, Sovcombank, and Tinkoff, together with vitality big Rosatom.
To evade detection, Gugnin allegedly erased the identities of Russian recipients throughout greater than 80 invoices.
In response to the DOJ, Evita’s cost flows masked the true origin and vacation spot of the funds, turning the platform into an unlawful backchannel for sanctioned transactions.
An announcement from the FBI’s New York workplace famous that Gugnin’s operations “manipulated our nation’s monetary infrastructure to learn our nation’s adversaries.”
This aligns with broader issues in Washington about how cryptocurrencies can be utilized to bypass financial sanctions, particularly within the context of rising geopolitical tensions involving Russia.
DOJ says accused actively searched the right way to keep away from US scrutiny
Federal prosecutors argue that Gugnin knowingly violated US legal guidelines. Digital forensic proof reveals he performed a number of web searches with phrases reminiscent of “the right way to know if there may be an investigation towards you,” “cash laundering penalties US,” and “am I being investigated?”
These searches reportedly passed off whereas his agency was actively routing funds tied to sanctioned entities.
He’s additionally accused of failing to implement any anti-money laundering (AML) controls, a requirement beneath US monetary laws for platforms facilitating cross-border funds or stablecoin transactions.
Not less than a number of the funds had been allegedly used to buy US-origin know-how for Russian shoppers.
Broader implications for crypto regulation and sanctions compliance
The arrest of Gugnin comes amid a world push to tighten crypto compliance frameworks. The DOJ’s motion underscores the dangers confronted by platforms working throughout a number of jurisdictions, particularly when serving shoppers in sanctioned nations.
The Evita case can also be a reminder of how stablecoins, extensively thought-about extra clear than privateness cash, can nonetheless be exploited for illicit finance when AML requirements are ignored.
The case will seemingly gasoline ongoing discussions in Congress and worldwide our bodies just like the Monetary Motion Job Pressure (FATF) about stricter reporting necessities and real-time monitoring instruments for digital asset companies.
It could additionally encourage US regulators to broaden enforcement efforts towards platforms not directly concerned in sanctions evasion or facilitating funds for hostile governments.
The DOJ has not but named some other people or companies doubtlessly beneath investigation in reference to Evita, however officers have confirmed the probe is ongoing. Gugnin stays in federal custody and is predicted to face trial in New York.
