On Monday, the DOJ slapped Gugnin with a 22-count indictment, with charges ranging from wire and bank fraud, money laundering, to operating an unlicensed money transmitting business, among other accusations. If found guilty, Gugnin could potentially be sentenced to life imprisonment. This case adds to a growing list of instances where cryptocurrencies have been used to skirt sanctions and launder money.

The DOJ asserts that from June 2023 to January 2025, Gugnin masterminded an extensive money laundering operation, processing Tether USDTUSD transactions for Russian clients connected to sanctioned banks such as Sberbank, VTB, Sovcombank, and Tinkoff. John A. Eisenberg, assistant attorney general for national security, stated that Gugnin transformed his crypto business into a “secret conduit for illicit money,” channeling around $530 million through the US financial system to aid sanctioned Russian banks and assist Russian consumers in procuring sensitive American technologies.

According to the DOJ, Gugnin misled US banks about Evita’s Russian connections, manipulated invoices to conceal client identities, and disregarded Anti-Money Laundering regulations, despite having registered Evita Pay as a money transmitting business in Florida using false declarations. The DOJ reached out to Evita Pay for comments, but none were immediately forthcoming.

Furthermore, the DOJ claims that Gugnin conducted online searches such as “Am I being investigated” and “signs you may be under criminal investigation,” suggesting that he was aware of his illegal activities. Gugnin now faces a potential 30-year prison sentence for each count of bank fraud, up to 20 years for each wire fraud count, and up to 10 years for failing to implement an effective Anti-Money Laundering program and failure to file suspicious activity reports. Conspiracy to defraud the US could add an additional five years to his sentence.

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