Evita Pay Founder Accused of Running ‘Covert Pipeline for Dirty Money’ to Undermine U.S. National Security

The U.S. Department of Justice (DOJ) has indicted Iurii Gugnin, founder of crypto payments platform Evita Pay, for allegedly operating a $530 million money laundering scheme that funneled funds from sanctioned Russian banks into the U.S. financial system.

Gugnin, who was arrested in New York, faces a 22-count indictment including charges of wire fraud, bank fraud, money laundering, and operating an unlicensed money transmitting business. If convicted on all charges, Gugnin could face life in prison.

Crypto Firm Used to Bypass Sanctions, DOJ Says

According to prosecutors, Gugnin used Evita Pay as a vehicle to process large volumes of Tether (USDT) transactions from June 2023 through January 2025 on behalf of clients affiliated with Russian banks under U.S. and international sanctions, including Sberbank, VTB, Sovcombank, and Tinkoff.

“Gugnin turned his crypto company into a covert pipeline for dirty money, moving approximately $530 million through the U.S. financial system to assist sanctioned Russian institutions,” said John A. Eisenberg, Assistant Attorney General for National Security.

Authorities allege the laundered funds were partially used to help Russian end-users acquire sensitive American technologies, potentially undermining U.S. national security.

False Registration and AML Violations

Although Evita Pay was registered in Florida as a money transmitting business, the DOJ says the registration was obtained through false statements, and that the company failed to implement any meaningful Anti-Money Laundering (AML) controls, including failing to file Suspicious Activity Reports (SARs) as required under U.S. law.

Gugnin allegedly misrepresented Evita’s Russian ties to U.S. financial institutions, submitted fraudulent invoices, and routinely obfuscated the identities of his clients to avoid triggering compliance alarms.

“This case sends a clear message: we will not tolerate the use of crypto to circumvent international sanctions,” Eisenberg added.

Online Searches Suggest Criminal Awareness

According to court documents, Gugnin suspected he was under investigation and conducted a series of incriminating online searches, including:

• “Am I being investigated”

• “Signs you may be under criminal investigation”

• “What are the best ways to find out if you’re being investigated”

• “What can someone do when they think they might be under investigation”

Prosecutors argue that these searches demonstrate Gugnin’s awareness of wrongdoing, undermining any potential defense of ignorance or negligence.

Severe Sentencing Potential

If convicted, Gugnin faces stiff penalties:

• Up to 30 years per count of bank fraud

• Up to 20 years per count of wire fraud

• Up to 10 years for AML violations

• Up to 5 years for conspiracy to defraud the United States

In total, the sentence could exceed a lifetime behind bars, making this one of the most serious crypto-related indictments brought under national security statutes to date.

Growing Trend of Crypto-Enabled Sanctions Evasion

The Gugnin case is the latest in a series of U.S. enforcement actions targeting the use of cryptocurrency for sanctions evasion. As blockchain tools become more sophisticated, officials warn that rogue actors and foreign adversaries are increasingly leveraging digital assets to bypass traditional controls.

A 2024 report from Chainalysis noted a sharp increase in the use of crypto to evade export controls, especially by entities linked to Russia, North Korea, and Iran.

Yet, the transparent nature of blockchain has also enabled authorities to trace illicit flows, even when users deploy obfuscation strategies such as mixers, multi-hop transfers, or shell wallets.

Evita Pay Remains Silent

Attempts to reach Evita Pay for comment were unsuccessful. The company has not released a public statement addressing the indictment or its operational status following Gugnin’s arrest.

The DOJ has not disclosed whether additional arrests or asset seizures are imminent, but it noted that the investigation remains ongoing.

Conclusion

The arrest of Iurii Gugnin underscores the growing intersection between cryptocurrency and national security enforcement, as U.S. authorities intensify efforts to prevent the use of digital assets to fund adversarial regimes.

With $530 million allegedly laundered through a web of misrepresentation and regulatory evasion, the case serves as a stark reminder that crypto firms operating in the U.S. must adhere to strict compliance standards — or face the full weight of federal prosecution.

As enforcement ramps up, the crypto industry is once again under pressure to tighten its AML protocols and work more closely with regulators to ensure bad actors are rooted out before they pose geopolitical risks.