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The U.S. Department of Justice (DOJ) has charged Russian national Iurii Gugnin with orchestrating a massive crypto money laundering via Tether scheme, moving $530 million for clients tied to sanctioned Russian banks.
The 22-count indictment alleges Gugnin deceived U.S. financial institutions, falsified compliance records, and enabled access to restricted technology, spotlighting the vulnerabilities of stablecoins in illicit finance.
Gugnin, a 38-year-old New York resident, allegedly leveraged his firms, Evita Investments and Evita Pay to process transactions primarily using Tether (USDT). According to court documents, his operation followed a playbook familiar to regulators:
Sanctioned clients: Funds originated from Russian entities linked to blacklisted banks like Sberbank and VTB.
Stablecoin obfuscation: USDT’s dollar peg and cross-border efficiency helped mask the money trail.
Bank deception: Gugnin allegedly altered invoices and submitted false AML compliance claims to U.S. banks.
“Tether’s stability and speed make it a preferred tool for crypto money laundering via Tether networks,” — David Carlisle, VP of Policy at Elliptic, told journalists.
The DOJ claims Gugnin’s scheme thrived by exploiting weak points in crypto-to-fiat gateways:
Florida license fraud: He secured a money transmitter license by misrepresenting Evita’s ties to Russia.
No SARs filed: Despite handling $530M, Evita never submitted Suspicious Activity Reports (SARs).
Tech smuggling: Funds allegedly purchased export-controlled U.S. tech for Rosatom, Russia’s nuclear agency.
“This case shows how crypto money laundering via Tether can threaten national security,” Deputy AG Lisa Monaco stated in a DOJ press release.
Investigators uncovered damning evidence in Gugnin’s browser history:
Searches for “money laundering penalties” and “how to detect surveillance.”
Visits to forums discussing law enforcement investigation tactics.
These findings, prosecutors argue, prove Gugnin’s awareness of his crimes.
