Crypto CEO in Hot Water Over $530M Scheme to Evade Russian Sanctions

A justice gavel.

In a case that’s shaking up both crypto and legal circles, the U.S. Department of Justice has charged Iurii Gugnin, CEO of crypto payments company Evita Pay, with laundering a staggering $530 million through Tether (USDT) on behalf of sanctioned Russian banks. Prosecutors allege that Gugnin helped financial institutions in Russia dodge international sanctions by moving large sums of money through a complex network of crypto wallets and shell companies.

According to the indictment, this wasn’t some one-off operation—it spanned from mid-2023 to early 2025 and allegedly involved disguising transactions as legitimate cross-border payments. Gugnin is said to have used Evita Pay’s infrastructure to funnel money into and out of the U.S., masking it with fake documentation and deceptive business practices. The DOJ describes it as one of the largest crypto-enabled sanction evasion schemes uncovered to date.

What makes the case especially serious is that it touches on national security concerns. U.S. officials claim Gugnin’s actions didn’t just violate financial regulations—they actively undermined sanctions intended to limit Russia’s access to the global financial system amid ongoing geopolitical tensions. The use of Tether in the operation highlights the increasing scrutiny on stablecoins and their potential use in cross-border financial crimes.

Gugnin, who is believed to be abroad, faces a long list of charges including conspiracy to commit wire fraud, sanctions violations, and money laundering. If convicted, he could spend the rest of his life behind bars. The case sends a clear message: authorities are ramping up efforts to crack down on crypto’s use as a backdoor for evading global financial rules.