- Evita Pay used USDT to funnel cross-border funds.
- Shoppers 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 working a complicated cross-border fraud and cash laundering scheme by his crypto platform, Evita.
Between June 2023 and January 2025, Gugnin allegedly processed over $530 million through US banks and cryptocurrency providers to bypass sanctions and finance Russian establishments, together with a number of blacklisted banks and a state-owned power agency.
The Division of Justice (DOJ) arrested Gugnin on Monday in New York, the place he had been residing in a luxurious Manhattan residence 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 costs.
Sanctioned Russian banks used Evita for hidden crypto transfers
Gugnin’s firm, Evita, is accused of funnelling funds from international shoppers by American monetary infrastructure utilizing stablecoins like USDT.
Prosecutors stated the transactions have been made on behalf of sanctioned Russian entities, together with Sberbank, VTB Financial institution, Sovcombank, and Tinkoff, together with power large Rosatom.
To evade detection, Gugnin allegedly erased the identities of Russian recipients throughout greater than 80 invoices.
In keeping with 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 financial infrastructure to benefit our nation’s adversaries.”
This aligns with broader considerations in Washington about how cryptocurrencies can be utilized to avoid financial sanctions, particularly within the context of rising geopolitical tensions involving Russia.
DOJ says accused actively searched keep away from US scrutiny
Federal prosecutors argue that Gugnin knowingly violated US legal guidelines. Digital forensic proof reveals he carried out a number of web searches with phrases resembling “how to know if there is an investigation against you,” “money laundering penalties US,” and “am I being investigated?”
These searches reportedly occurred 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.
At the least a few of the funds have been allegedly used to buy US-origin expertise for Russian shoppers.
Broader implications for crypto regulation and sanctions compliance
The arrest of Gugnin comes amid a worldwide 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 possible gasoline ongoing discussions in Congress and worldwide our bodies just like the Monetary Motion Activity Power (FATF) about stricter reporting necessities and real-time monitoring instruments for digital asset corporations.
It could additionally encourage US regulators to broaden enforcement efforts in opposition to platforms not directly concerned in sanctions evasion or facilitating funds for hostile governments.
The DOJ has not but named another people or corporations probably 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.
