Russian Citizen Violated Sanctions, Export Controls Through Illegal Operation of Crypto Company
A Russian citizen was charged with using his cryptocurrency company Evita to violate U.S. sanctions by funneling over $500 million in overseas payments through U.S. banks and cryptocurrency exchanges, according to a 22-count indictment unsealed by DOJ on June 9. Iurii Gugnin, a resident of New York and a Russian citizen, was charged with wire and bank fraud, conspiracy to defraud the U.S. and violating the International Emergency Economic Powers Act, among other charges.
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As founder and president of Evita Investments and Evita Pay, Gugnin allegedly used both companies to allow foreign customers, "many of whom held funds at sanctioned Russian banks," to send him cryptocurrency, which he laundered through U.S. bank accounts and cryptocurrency wallets, DOJ said. From June 2023 to January 2025, Gugnin converted the funds to U.S. dollars or other fiat currencies and made payments via New York bank accounts, DOJ said.
Gugnin allegedly lied to U.S. banks by telling them he didn't do business with Russian or sanctioned entities. But DOJ said many of his customers were located in Russia, and he facilitated payments in funds held at sanctioned banks, including PJSC Sberbank, PJSC Sovcombank, PJSC VTB Bank and JSC Tinkoff Bank. Gugnin even held accounts himself at sanctioned banks JSC Alfa-Bank and PJSC Sberbank, the agency said.
Gugnin’s company allegedly worked as a front to launder hundreds of millions of dollars for sanctioned Russian entities to obtain export-controlled technology for the government, said Roman Rozhavsky, assistant director of the FBI’s Counterintelligence Division.
The indictment adds that Gugnin failed to "file suspicious activity reports, as required under the Bank Secrecy Act."
Gugnin faces a maximum of 30 years in prison for each count of bank fraud; 20 years in prison for each wire fraud, IEEPA, money laundering and related conspiracy count; and a 10-year prison sentence for failing to implement an effective anti-money laundering program and failing to file suspicious activity reports. He also faces a five-year prison sentence for conspiring to defraud the U.S. and operating an unlicensed money-transmitting business.