CEO of Evita Pay Accused of Washing $530 Million from Prohibited Russian Financial Institutions
In a significant development, Iurii Gugnin, a 38-year-old Russian resident in New York, has been charged by the U.S. Department of Justice with multiple offenses related to money laundering and sanctions violations. Gugnin is the founder of Evita Investments Inc. and Evita Pay Inc., companies that allegedly served as a front for laundering approximately $530 million in illicit funds connected to sanctioned Russian banks and entities [1][2][3].
Gugnin is accused of operating an unlicensed money transmitting business, participating in related conspiracy offenses, and neglecting to implement an effective anti-money laundering (AML) program. Court filings also accuse him of failing to file suspicious activity reports [1].
The laundering operation allowed sanctioned Russian financial institutions to channel funds via a complex network of digital wallets and U.S. bank accounts, converting the funds into U.S. dollars and stablecoins like USDT (Tether) for international use, evading export controls and U.S. sanctions [2][3].
The U.S. Attorney for the Eastern District of New York, Joseph Nocella Jr., stated that Evita Pay allegedly operated as a front to channel hundreds of millions of dollars for sanctioned Russian organizations [3]. Gugnin is also accused of facilitating the purchase of U.S. electronics and controlled technology components for Rosatom, Russia’s state-owned nuclear tech company [3].
Prosecutors allege that Gugnin deceived banks and cryptocurrency exchanges by falsely claiming that Evita Pay had no dealings with Russian entities or sanctioned parties. Payments were made via Manhattan bank accounts, concealing the sources and true parties involved [2].
The laundered cryptocurrency funds were then moved through crypto wallets and U.S. bank accounts, converting them into U.S. dollars or other fiat currencies [1]. Gugnin faces a 22-count indictment that includes charges of wire and bank fraud, conspiracy to defraud the United States, violating the International Emergency Economic Powers Act (IEEPA), and operating an unlicensed money transmitting business [1][3].
Assistant Attorney General for National Security, John A. Eisenberg, emphasized that the DOJ remains committed to holding accountable individuals who threaten U.S. national security [3]. This case highlights how cryptocurrencies and stablecoins can be exploited to circumvent sanctions and AML controls involving well-known sanctioned Russian banks, raising concerns about regulatory oversight and enforcement in U.S. crypto markets [2].
[1] https://www.justice.gov/opa/pr/new-york-man-charged-operating-unlicensed-money-transmitting-business-and-conspiring-violate [2] https://www.justice.gov/usao-edny/pr/brooklyn-man-charged-operating-unlicensed-money-transmitting-business-and-conspiring-violate [3] https://www.justice.gov/usao-edny/pr/brooklyn-man-charged-operating-unlicensed-money-transmitting-business-and-conspiring-violate
The security violation case against Gugnin involves evidence of a money laundering operation that operated under the guise of Evita Pay Inc., a company in the finance industry. This alleged operation, according to court filings, was used to channel hundreds of millions of dollars for sanctioned Russian organizations, raising concerns about regulatory oversight in the cryptocurrency and stablecoin sectors.
