Latest news with #EvitaPay
Yahoo
2 days ago
- Business
- Yahoo
A crypto CEO is accused of laundering $500 million to aid sanctioned Russian banks
Federal prosecutors charged Iurii Gugnin with using his crypto firm to launder $530 million. Gugnin, the CEO of Evita Pay, is accused by the DOJ of processing Tether stablecoin transactions. The complaint said Gugnin used his company to "help Russian end-users acquire sensitive US technology." The US Department of Justice charged the CEO of a cryptocurrency company with a money laundering scheme that helped clients with ties to Russian banks evade sanctions. An announcement from the department on Monday said that Iurii Gugnin, the CEO of Evita Pay, funneled $530 million of foreign payments through banks and crypto exchanges while concealing the purpose and the source of the transactions. "The defendant is charged with turning a cryptocurrency company into a covert pipeline for dirty money, moving over half a billion dollars through the U.S. financial system to aid sanctioned Russian banks and help Russian end-users acquire sensitive U.S. technology," John A. Eisenberg, assistant attorney general for national security, said. The scheme ran from June 2023 to January 2025, and involved processing payments of Tether — one of the biggest dollar-denominated stablecoins — for Russian clients linked to blacklisted banks including VTB and Sberbank. "To effectuate the scheme, Gugnin defrauded various banks and cryptocurrency exchanges through which he converted funds and made wire transfers," the DOJ statement said. "Gugnin repeatedly lied to these banks and exchanges, telling them that Evita did not conduct business with entities in Russia and did not deal with sanctioned entities." Gugnin was arrested in Manhattan on Monday and faces 22 counts related to wire and bank fraud, operating an unlicensed money transmitting business, and failing to implement an effective anti-money laundering compliance program. The DOJ statement also says Gugnin's internet search queries included things like "how to know if there is an investigation against you," and "money laundering penalties US." If convicted, Gugnin could face life in prison, with a maximum of 30 years for each count of banks fraud, 20 years for each count of wire fraud, and 10 years for failing to implement anti-money laundering practices. Read the original article on Business Insider
Business Insider
2 days ago
- Business
- Business Insider
A crypto CEO is accused of laundering $500 million to aid sanctioned Russian banks
The US Department of Justice charged the CEO of a cryptocurrency company with a money laundering scheme that helped clients with ties to Russian banks evade sanctions. An announcement from the department on Monday said that Iurii Gugnin, the CEO of Evita Pay, funneled $530 million of foreign payments through banks and crypto exchanges while concealing the purpose and the source of the transactions. "The defendant is charged with turning a cryptocurrency company into a covert pipeline for dirty money, moving over half a billion dollars through the U.S. financial system to aid sanctioned Russian banks and help Russian end-users acquire sensitive U.S. technology," John A. Eisenberg, assistant attorney general for national security, said. The scheme ran from June 2023 to January 2025, and involved processing payments of Tether — one of the biggest dollar-denominated stablecoins — for Russian clients linked to blacklisted banks including VTB and Sberbank. "To effectuate the scheme, Gugnin defrauded various banks and cryptocurrency exchanges through which he converted funds and made wire transfers," the DOJ statement said. "Gugnin repeatedly lied to these banks and exchanges, telling them that Evita did not conduct business with entities in Russia and did not deal with sanctioned entities." Gugnin was arrested in Manhattan on Monday and faces 22 counts related to wire and bank fraud, operating an unlicensed money transmitting business, and failing to implement an effective anti-money laundering compliance program. The DOJ statement also says Gugnin's internet search queries included things like "how to know if there is an investigation against you," and "money laundering penalties US." If convicted, Gugnin could face life in prison, with a maximum of 30 years for each count of banks fraud, 20 years for each count of wire fraud, and 10 years for failing to implement anti-money laundering practices.
Yahoo
3 days ago
- Business
- Yahoo
US accuses Russian of laundering millions, helping Moscow obtain sensitive technology
U.S. prosecutors have charged cryptocurrency entrepreneur Iurii Gugnin with laundering over $500 million and helping sanctioned Russian entities bypass export controls. Gugnin, a 38-year-old Russian national living in New York, founded the U.S.-based companies Evita Investments and Evita Pay. He was arrested in New York on June 9 and faces multiple charges, including wire fraud, bank fraud, money laundering, and conspiracy. According to court documents, Gugnin used his crypto payments companies to receive cryptocurrency from foreign clients, many of whom held accounts at sanctioned Russian banks. He then converted the funds into U.S. dollars through U.S. bank accounts and facilitated payments for electronics and other goods, concealing the origin of the money and the identities of those involved. "Gugnin's cryptocurrency company allegedly served as a front to launder hundreds of millions of dollars for sanctioned Russian entities and to obtain export-controlled technology for the Russian government," said Assistant Director Roman Rozhavsky of the FBI's Counterintelligence Division. Between June 2023 and January 2025, Gugnin used Evita to facilitate the movement of approximately $530 million through the U.S. financial system, most of which he received in the form of a cryptocurrency stablecoin known as Tether, according to the U.S. Department of Justice report. Prosecutors allege that Gugnin laundered money used to purchase parts for Rosatom, Russia's state-owned nuclear technology company, and helped Russian end-users acquire export-controlled U.S. technology. Assistant Attorney General John A. Eisenberg said Gugnin turned a crypto startup into 'a covert pipeline for dirty money.' The Department of Justice accused Gugnin of deceiving banks and crypto exchanges by falsely claiming that Evita did not deal with Russian or sanctioned entities. He also allegedly doctored invoices to obscure Russian customers and failed to comply with anti-money laundering rules, including neglecting to file required suspicious activity reports. If convicted, Gugnin faces a maximum penalty of 30 years in prison for each count of bank fraud and a maximum penalty of 20 years in prison for each of the wire fraud. Read also: Key to Russia's potential defeat lies in its economy We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
CNBC
3 days ago
- Business
- CNBC
Crypto CEO accused of laundering $500 million linked to sanctioned Russian banks
Federal prosecutors in Brooklyn have charged the founder of a U.S.-based cryptocurrency payments firm with operating what they allege was a sophisticated international money laundering scheme that moved over half a billion dollars on behalf of sanctioned Russian banks and other entities. Iurii Gugnin, a 38-year-old Russian national living in Manhattan, was arrested and arraigned Monday and ordered held without bail pending trial. Gugnin faces a 22-count indictment accusing him of wire and bank fraud, violating U.S. sanctions and export controls, money laundering, and failing to implement legally required anti-money laundering protocols. "The defendant is charged with turning a cryptocurrency company into a covert pipeline for dirty money, moving over half a billion dollars through the U.S. financial system to aid sanctioned Russian banks and help Russian end-users acquire sensitive U.S. technology," Assistant Attorney General Eisenberg said in a statement. Prosecutors said Gugnin used his companies — Evita Investments and Evita Pay — to process about $530 million in payments while concealing the origins and purposes of the funds. Between June 2023 and January 2025, he allegedly funneled the money through U.S. banks and cryptocurrency exchanges, primarily using tether, a widely used, dollar-pegged stablecoin. Clients included individuals and businesses linked to sanctioned Russian institutions such as Sberbank, VTB Bank, Sovcombank, Tinkoff, and the state-owned nuclear energy firm Rosatom. To carry out the scheme, Gugnin allegedly misrepresented the scope of his business, falsified compliance documentation, and lied to banks and digital asset platforms about his ties to Russia. Prosecutors say he masked the source of funds through shell accounts and doctored more than 80 invoices, digitally erasing the identities of Russian counterparties. Investigators also cite internet searches indicating he knew he was under scrutiny, including queries like "how to know if there is an investigation against you" and "money laundering penalties US." The Justice Department said Gugnin maintained direct ties to members of Russia's intelligence service and officials in Iran — countries that do not extradite to the U.S. He is also accused of helping the export of sensitive U.S. technology to Russian clients, including an anti-terrorism-controlled server. Gugnin was profiled last fall in a Wall Street Journal article about high-net-worth renters in Manhattan, where he reportedly paid $19,000 per month for an apartment. If convicted on bank fraud charges, he faces a statutory maximum sentence of 30 years in prison, but if convicted on all counts, Gugnin could be given a consecutive maximum sentence significantly longer than his lifetime.
