Iurii Gugnin is facing 22 criminal charges for allegedly laundering $530 million through his cryptocurrency firms, Evita Investments and Evita Pay, for Russian clients tied to sanctioned banks. He is accused of wire fraud, bank fraud, and money laundering, with potential penalties of up to 30 years per charge.

Gugnin used Tether (USDT) to move funds through US banks and crypto exchanges, bypassing US sanctions and export controls. He allegedly deceived financial institutions, falsified compliance documents, and facilitated access to sensitive US technologies, highlighting the misuse of digital assets for illicit finance.

Gugnin’s actions enabled sanctioned Russian entities to obtain US technology and evade restrictions. He moved over $500 million through the US financial system, concealing the origins of the funds and assisting clients in evading international sanctions.

Gugnin failed to comply with AML regulations, did not file suspicious activity reports (SARs), and misled banks and exchanges about Evita’s compliance. He faces charges of wire fraud, bank fraud, money laundering, and violating the International Emergency Economic Powers Act (IEEPA).

Federal investigators found evidence that Gugnin was aware of the illegality of his actions, as he searched for information on criminal investigations and money laundering penalties. He actively tried to avoid detection and conceal his money laundering activities.

Gugnin is currently detained and awaiting trial in New York, considered a flight risk. His case highlights concerns about cryptocurrencies, especially stablecoins, being used to evade regulations and sanctions. It may lead to stricter regulations for crypto firms and more vigorous enforcement of AML and sanctions compliance rules.

Read more at Cointelegraph: How a Russian National Allegedly Used Tether to Launder $530M in Crypto