Georgia detains crypto manager accused of tens of millions in unlicensed transfers

Georgia’s Investigation Service of the Ministry of Finance said on August 12, 2026, that it had arrested the manager of a cryptocurrency company accused of facilitating illegal crypto transactions worth tens of millions of dollars.

According to the agency, the company operated without the mandatory registration required by the National Bank of Georgia while conducting conversions between virtual assets and cash. Investigators allege that the company’s activities enabled the movement of funds internationally without the level of oversight required under Georgian law.

The investigation places particular emphasis on the scale and cross-border nature of the alleged activity. Authorities said the company’s operations allowed the accused to facilitate illegal crypto transactions outside the country’s established regulatory framework.

“Through this activity, the accused facilitated uncontrolled international transactions in the country,” — Georgia’s Investigation Service of the Ministry of Finance.

The agency did not identify the cryptocurrency company or disclose the identity of the detained manager.

Authorities seize cash, crypto and banking equipment

As part of the investigation, Georgian law enforcement officers conducted investigative measures that resulted in the seizure of a range of materials and assets allegedly connected to the case.

Authorities confiscated computer equipment, dozens of bank cards, various documents and cash. The seized fiat currency included $83,903 and €300.

Investigators also seized cryptocurrency valued at approximately $79,600.

The combination of digital assets, banking instruments, cash and computer equipment could provide authorities with evidence to examine how the alleged illegal crypto transactions were conducted and whether additional individuals or entities were involved.

The Investigation Service said the company had been engaged in the conversion of virtual assets and cash despite lacking the mandatory registration with the National Bank of Georgia.

The agency characterized the activity as involving “uncontrolled international transactions,” while the seizure of cryptocurrency and financial records gives investigators material that could be examined as the case progresses.

Registration rules put crypto activity under scrutiny

The case highlights the importance of registration and regulatory oversight for businesses operating in Georgia’s virtual-asset sector. Companies involved in relevant cryptocurrency activities are subject to requirements administered through the country’s financial regulatory framework.

In this case, investigators allege that the company continued operating without the required registration. That alleged failure forms a central part of the case involving illegal crypto transactions.

The authorities have not said whether the investigation is focused solely on the company manager or whether further arrests or charges could follow. They have also not disclosed the full value or destination of the international transactions allegedly facilitated through the business.

The seizure of bank cards, documents and computer equipment could allow investigators to reconstruct transactions and establish the extent of the alleged activity. Any additional conclusions, however, will depend on the outcome of the investigation and subsequent court proceedings.

The case also illustrates the regulatory risks facing cryptocurrency businesses that operate outside established registration requirements. As governments increase oversight of virtual assets, companies handling crypto-to-cash conversions are increasingly expected to maintain appropriate controls and operate within applicable financial rules.

Manager faces prison over alleged illegal crypto transactions

The detained manager has been charged with illegal entrepreneurial activity, according to the Investigation Service.

If convicted, he faces between three and five years in prison.

The charge does not itself establish guilt, and the allegations surrounding the illegal crypto transactions will ultimately have to be tested through Georgia’s judicial process.

Authorities have not publicly released the name of the accused, the company involved or the identities of any other potential participants. They have also not indicated whether the alleged transactions involved money laundering or other offenses beyond the charge of illegal entrepreneurial activity.

Source; Georgia Today