A massive international crypto crime has come to light as U.S. authorities charge a Russian national with laundering $530M in crypto. On June 9, 2025, the U.S. Department of Justice (DOJ) revealed a 22-count indictment against Iurii Gugnin, a Russian citizen residing in New York, accusing him of using cryptocurrency to bypass U.S. sanctions and commit large-scale financial fraud.
$530 Million Moved Through Crypto Channels
According to the DOJ, Gugnin operated two New York-based cryptocurrency businesses, Evita Investments Inc. and Evita Pay Inc., which he used to move roughly $530 million through the U.S. financial system. These transactions allegedly took place between June 2023 and January 2025 and were mostly conducted in Tether (USDT), a stablecoin pegged to the U.S. dollar.
The DOJ’s press release stated that Gugnin’s companies provided payment services for foreign clients, particularly those in Russia and other sanctioned jurisdictions, deliberately disguising the origin and destination of funds.
How the Scheme Worked
To execute the laundering operation, Gugnin allegedly:
- Misled U.S. banks and crypto exchanges by falsely stating that his companies had no connections to sanctioned Russian entities.
- Used Tether to convert large sums into fiat currencies while concealing the true nature of the transactions.
- Facilitated wire transfers and crypto-to-fiat conversions to mask the movement of illicit funds.
- Participated in the procurement of sensitive U.S. technologies for Russian end-users, including components potentially tied to Russia’s nuclear program.
In essence, Gugnin served as a middleman, helping Russian clients access the global financial system despite existing economic restrictions imposed by the U.S. government.
Charges and Legal Consequences
The 22 charges filed against Gugnin span a wide range of financial crimes. These include:
- Wire fraud
- Bank fraud
- Conspiracy to defraud the United States
- Money laundering
- Violations of the International Emergency Economic Powers Act (IEEPA)
The IEEPA is a key legal tool that allows the U.S. to enforce economic sanctions and restrict foreign access to critical American technologies.
According to prosecutors, Gugnin’s actions undermined not just U.S. laws, but also global efforts to restrict financial access for Russian entities amid heightened geopolitical tensions.
If convicted on all counts, Gugnin faces a maximum sentence of 30 years in federal prison.
DOJ Speaks Out
U.S. Attorney Joseph Nocella Jr., who is overseeing the case, emphasized the seriousness of the charges, stating:
“This case sends a clear message: We will aggressively pursue individuals who exploit the U.S. financial system to benefit sanctioned regimes and to commit fraud on a global scale.”
He further added that the DOJ remains committed to cracking down on cryptocurrency-based crimes, particularly those that aid foreign adversaries or threaten national security.
This case highlights the growing concern among global regulators about the use of cryptocurrency, especially stablecoins like Tether, in circumventing traditional financial controls. Due to their fast settlement, pseudonymous nature, and cross-border capabilities, cryptocurrencies are increasingly being used to:
- Launder illicit funds
- Bypass international sanctions
- Finance illegal arms or technology procurement
U.S. regulators and lawmakers have been pressing for tighter crypto regulations, especially around know-your-customer (KYC) and anti-money laundering (AML) compliance.
Why This Case Matters
The Gugnin case marks one of the largest crypto-based sanctions evasion schemes ever prosecuted in the U.S., and the first of its kind involving a Russian national operating openly from U.S. soil.
It raises urgent questions about:
- The effectiveness of current sanctions frameworks in a digital age.
- The ability of U.S.-based crypto firms to detect and report suspicious activities.
- The risks of stablecoin misuse in international financial crimes.
It also comes amid increased enforcement activity targeting crypto crimes from rug pulls and Ponzi schemes to terrorist financing and, now, state-linked economic sabotage.
What’s Next
The DOJ has not yet announced a trial date, but Gugnin is currently in custody and awaiting arraignment in federal court. If found guilty, he could face decades behind bars, massive fines, and asset seizures.
Meanwhile, investigators are likely continuing to trace the flow of the $530 million, working with international partners to identify other actors involved in the network.
This case serves as a wake-up call for both crypto firms and regulatory agencies. As digital assets become more deeply embedded in global finance, their misuse by bad actors is also increasing. Governments worldwide must now strike a careful balance between encouraging innovation and enforcing the rule of law.
For the crypto industry, this is yet another reminder of the importance of compliance, transparency, and proactive engagement with regulators.
