DOJ Unveils Major Crypto Crime Case
The U.S. Department of Justice (DOJ) announced on June 9 that Russian national Iurii Gugnin, currently residing in New York, has been charged with 22 federal offenses for allegedly laundering more than $530 million through cryptocurrency platforms. The DOJ accuses Gugnin of using his companies, Evita Investments Inc. and Evita Pay Inc., to orchestrate an elaborate scheme enabling foreign—primarily Russian—clients to evade U.S. sanctions and gain access to restricted financial networks.
Tether Used to Funnel Millions Through U.S. Banks
Between June 2023 and January 2025, Gugnin reportedly moved over half a billion dollars through the U.S. financial system, primarily using the stablecoin Tether (USDT). Prosecutors say these transactions helped disguise the true origin of funds, allowing clients to bypass restrictions while maintaining access to international financial services. According to the indictment, “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, or ‘USDT.’”
Deception of Banks and Crypto Exchanges
To carry out the scheme, Gugnin is said to have misled financial institutions and cryptocurrency exchanges by falsely claiming that his businesses did not work with Russian entities. These misrepresentations allegedly enabled him to gain access to services that would have otherwise been denied under U.S. sanctions laws. “Gugnin defrauded various banks and cryptocurrency exchanges through which he converted funds and made wire transfers,” the DOJ stated in its announcement.
Links to Sensitive Technology Transfers
The charges extend beyond financial fraud, as Gugnin is also accused of facilitating payments for U.S. technology destined for Russian clients, including components tied to Russia’s nuclear program. These alleged transactions violate export control laws and highlight growing concerns over the role of cryptocurrencies in enabling the illicit acquisition of sensitive goods. The DOJ believes the procurement efforts were strategically designed to strengthen Russia’s technological capabilities in areas under strict U.S. oversight.
Full Scope of Criminal Charges
Gugnin now faces an extensive list of charges including wire fraud, bank fraud, conspiracy to defraud the United States, violations of the International Emergency Economic Powers Act (IEEPA), and money laundering. If convicted on all counts, he could face up to 30 years in federal prison. The case reflects an aggressive push by the DOJ to clamp down on the misuse of the U.S. financial system, especially when national security interests are at stake.
Prosecutors Signal Zero Tolerance
U.S. Attorney Joseph Nocella Jr. emphasized the seriousness of the allegations and the Justice Department’s resolve to prosecute those who exploit America’s financial networks. “We will not tolerate individuals who use U.S. financial infrastructure to further unlawful goals, particularly when they involve hostile foreign actors,” Nocella said. His comments underscore how financial crimes involving sanctioned entities are being treated as high-priority national security threats.
Stablecoins Under Greater Scrutiny
This case also draws fresh attention to stablecoins like Tether, which are increasingly used for international transfers due to their dollar-pegged value and fast transaction speed. However, their use in high-profile laundering schemes has alarmed regulators, who see a lack of oversight and enforcement mechanisms as a major vulnerability. Tether, in particular, has long faced criticism for its opaque reserve disclosures and limited visibility into user activity.
Crypto’s Role in Global Sanctions Evasion
The Gugnin case highlights how digital currencies are being weaponized by foreign actors to bypass economic sanctions and acquire restricted assets. As sanctions become a central tool of international diplomacy, adversaries are turning to blockchain-based technologies to operate in the shadows. The DOJ’s indictment reflects growing efforts to close these loopholes before they become systemic threats to global financial integrity.
A Watershed Moment for Crypto Enforcement
With more than $530 million allegedly laundered and links to restricted technologies, the charges against Gugnin mark one of the most significant cryptocurrency laundering cases to date. The case sends a clear message that U.S. law enforcement is prepared to act decisively against crypto-enabled crimes—especially those tied to sanctioned nations and critical industries. The outcome of this prosecution could help define future regulatory frameworks and international cooperation in the digital asset space.
