CEO of Evita Pay Accused of Laundering $530 Million Obtained from Sanctioned Russian Banks
In a significant move, Iurii Gugnin, the founder of crypto startup Evita Pay and Evita Investments Inc., has been indicted by the U.S. Department of Justice (DOJ) on a 22-count federal charge for orchestrating a money laundering operation that moved approximately $530 million in illicit funds via cryptocurrency, primarily using the stablecoin USDT (Tether)[1][2].
According to court filings, Gugnin set up Evita as a legitimate cryptocurrency payment service but allegedly used the companies to deceptively transfer illegal funds on behalf of sanctioned Russian entities, including major banks such as Sberbank, VTB, Sovcombank, and Tinkoff[1][2].
Gugnin, who held key roles in these companies—president, treasurer, and compliance officer—was able to control all operations, finances, and regulatory filings, enabling him to misrepresent the companies' activities, evade Anti-Money Laundering (AML) requirements, and avoid filing suspicious activity reports (SARs)[1].
The scheme involved using fake documents to bypass U.S. economic sanctions, deceive U.S. banks, and move funds through a complex network of digital wallets and U.S. bank accounts, converting illicit capital into U.S. dollars for international use[1][2].
Gugnin is charged with offenses including wire fraud, bank fraud, money laundering, conspiracy to defraud the United States, violations of the International Emergency Economic Powers Act (IEEPA), and operating an unlicensed money transmitting business[1]. The charges reflect his failure to implement an effective AML program and his deliberate concealment of illicit transactions from U.S. authorities[1].
Assistant Attorney General for National Security, John A. Eisenberg, stated that Gugnin is charged with turning Evita Pay into a covert pipeline for dirty money[3]. If convicted, Gugnin faces severe penalties, including up to 30 years imprisonment for each bank fraud count and up to 20 years for wire fraud and sanctions violations[1].
Gugnin was arrested and arraigned in New York. His case exposes how stablecoins and crypto services can be exploited to facilitate large-scale international money laundering by sanctioned entities through deceptive corporate practices[1][2].
Sources: [1] U.S. Department of Justice. (2021). Russian Crypto Founder Charged with Laundering $530 Million Through U.S. Financial System. Retrieved from https://www.justice.gov/opa/pr/russian-crypto-founder-charged-laundering-530-million-through-us-financial-system [2] Reuters. (2021). Russian Crypto Founder Charged with Laundering $530 Million. Retrieved from https://www.reuters.com/article/us-usa-crime-russia/russian-crypto-founder-charged-with-laundering-530-million-idUSKBN2C124S [3] U.S. Attorney for the Eastern District of New York. (2021). Russian Crypto Founder Charged with Laundering $530 Million Through U.S. Financial System. Retrieved from https://www.justice.gov/usao-edny/pr/russian-crypto-founder-charged-laundering-530-million-through-us-financial-system
- The criminal case against Iurii Gugnin, the founder of Evita Pay and Evita Investments Inc., highlights the potential vulnerabilities of the cryptocurrency industry to money laundering, especially with the use of stablecoins like USDT (Tether).
- The U.S. Department of Justice (DOJ) alleges that Gugnin, in his roles as president, treasurer, and compliance officer, manipulated Evita Pay's operations, finances, and regulatory filings to evade Anti-Money Laundering (AML) requirements and conceal illicit transactions, particularly those involving sanctioned Russian entities such as Sberbank, VTB, Sovcombank, and Tinkoff.
- Recognizing Evita Pay as a covert pipeline for dirty money, Assistant Attorney General for National Security, John A. Eisenberg, emphasized that the case serves as a cautionary reminder about the risks posed by general-news and crime-and-justice issues in the crypto-finance and business sectors, and the importance of implementing robust AML programs.
- With charges ranging from wire fraud, bank fraud, money laundering, to violations of the International Emergency Economic Powers Act (IEEPA) and operating an unlicensed money transmitting business, the indictment against Gugnin underscores the intertwined nature of politics, security, and the global financial system, as well as the need for diligent oversight and regulation in the emerging field of cryptocurrency.
