Crypto Executive Charged in $530 M Stablecoin Laundering Scheme
FOR IMMEDIATE RELEASE | New York, USA | June 11, 2025
On June 10, 2025, the U.S. Department of Justice unsealed a 22-count indictment against Russian national Iurii Gugnin for laundering over $530 million in USDT through his fintech firms Evita Investments and Evita Pay. Prosecutors allege Gugnin moved funds on behalf of sanctioned Russian banks—including Sberbank and VTB—by converting fiat into Tether (USDT), transferring it into U.S. accounts, then reconverting back to fiat to obscure the money trail. Between June 2023 and January 2025, he processed transactions exceeding $530 million while falsely representing to banks and exchanges that his companies had no ties to Russia or any sanctioned entities.
Incident Background
Gugnin’s operation exploited the high liquidity and pseudo-anonymity of stablecoins to shuffle illicit funds through multiple crypto exchanges and U.S. bank accounts. He used shell invoices and falsified paperwork to “launder” the proceeds before passing them through U.S. financial institutions. Investigators also uncovered his internet search history, which showed he was fully aware of the legal risks and actively sought to evade detection.
Scheme Mechanics
- Stablecoin Rails Exploited: The scheme relied on Tether’s network to move roughly $365 million for Russian clients, highlighting how even leading stablecoins can be abused for money laundering.
- Sanctions Evasion: Funds originated from and were funneled back to sanctioned banks like Sberbank, VTB, and Tinkoff, showing how illicit actors can leverage stablecoins to bypass international restrictions.
- Obfuscated Documentation: Gugnin’s companies presented falsified contracts and shell invoices to hide the true source and destination of funds.
Legal Proceedings
The 22-count indictment charges Gugnin with wire fraud, bank fraud, money laundering, operating an unlicensed money-transmitting business, and violating the Bank Secrecy Act. He faces up to 30 years in prison for each bank-fraud count and additional penalties for the other offenses. Gugnin was arrested in Manhattan and arraigned in the Eastern District of New York on June 10, 2025.
Industry Impact
This landmark case underscores key vulnerabilities:
- AML Gaps in Crypto: Even major stablecoins require robust compliance programs and real-time monitoring to prevent abuse.
- Regulatory Momentum: As U.S. lawmakers debate stablecoin regulation under the GENIUS Act, enforcement actions like this one add urgency for clear legal frameworks.
- Precedent for Enforcement: The DOJ’s aggressive stance signals that money laundering via crypto rails will attract severe penalties.
Expert Advice & Best Practices
- Strengthen AML/CFT Programs: Register as an MSB/VASP and implement comprehensive BSA compliance, including robust KYC and sanctions screening.
- Implement Real-Time Monitoring: Use on-chain analytics to flag unusual transfer patterns and file Suspicious Activity Reports promptly.
- Secure Custody & Segmentation: Store the majority of crypto reserves in multi-signature cold wallets and isolate critical infrastructure.
- Regular Independent Audits: Engage external auditors to test both AML controls and network security for on-chain and off-chain systems.
About Crypto Security Watch
Crypto Security Watch is a Jakarta-based nonprofit monitoring crypto security incidents worldwide.
Our Mission
We analyze, verify, and report on security incidents in the cryptocurrency ecosystem, empowering organizations and individuals with actionable insights and best practices.
Contact:
Li Wei
Co-Founder & Research Director, Crypto Security Watch
info@cryptosecuritywatch.com
https://cryptosecuritywatch.com