Iurii Gugnin, a 38-year-old resident of New York originally from Russia, was arrested and arraigned on Monday, June 9th. The United States Department of Justice unsealed a 22-count indictment charging him with wire fraud, bank fraud, money laundering, and other crimes.
Authorities say he used his cryptocurrency firm, Evita, to move over $500 million of foreign payments through U.S. banks and exchanges while hiding their source and purpose. Gugnin faces these charges in a federal court in New York.
Charges and Indictment
The indictment accuses Gugnin of multiple violations, including conspiracy to defraud the United States and breaching the International Emergency Economic Powers Act.
He also stands charged with operating an unlicensed money-transmitting business and failing to file required suspicious activity reports. Prosecutors say he lied to banks and exchanges about Evita’s dealings with Russian entities. His alleged actions put him at risk of decades in prison if convicted on all counts.
Alleged Scheme
Court documents describe how Gugnin founded and managed Evita Investments Inc. and Evita Pay Inc. He allegedly used these companies to let foreign clients hold cryptocurrency at sanctioned Russian banks.
He then converted that cryptocurrency into U.S. dollars or other fiat currencies through U.S. financial channels. By doing so, Gugnin masked who really sent and received the money. The indictment states these clients included Russian banks under U.S. sanctions, such as Sberbank and Sovcombank.
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Regulatory Failures
Gugnin claimed that Evita followed strict anti-money laundering and know-your-customer rules. In reality, the Department of Justice says he never enforced these measures.
He also failed to file reports of suspicious transactions with the Financial Crimes Enforcement Network. Gugnin did register Evita Pay with regulators in Florida and FinCEN, but he allegedly lied about the company’s true activities. That license then helped him persuade a crypto exchange to process more transactions.
Evidence of Wrongdoing
Prosecutors point to web searches made by Gugnin that suggest he knew he was breaking the law. He reportedly looked up phrases like “money laundering penalties” and “am I being investigated.”
They say he even altered invoices by obscuring client names and addresses to hide Russian connections. The funds moved through Evita also helped foreign clients buy U.S. technology and parts for Russia’s nuclear industry.
Legal Consequences
If found guilty, Gugnin could receive up to 30 years in prison for each bank fraud count. Other charges carry sentences as long as 20 years.
He also faces up to 10 years for failing to implement an anti-money laundering program and five years for operating an unlicensed money-transmitting business. His arrest sends a clear message that using cryptocurrency to shield illegal acts will not go unpunished.
Gugnin’s case highlights the risks of mixing digital currency with shadowy financial activities. Prosecutors say his scheme posed a threat to national security by helping sanctioned Russian banks and clients evade U.S. controls.
As the legal process moves forward, authorities will continue to monitor any attempts to exploit the U.S. financial system through cryptocurrency.
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