How a Russian National Allegedly Laundered $530M in Crypto via Tether
Iurii Gugnin, a Russian national residing in New York, arranged an extensive money laundering operation that allegedly moved over $530 million using the stablecoin Tether (USDT) to secretly benefit clients linked to sanctioned Russian banks and entities.
Gugnin founded two U.S.-based cryptocurrency companies. Posing as a legitimate payment processor, he marketed their services to clients—many of whom were directly associated with Russian banks sanctioned by the U.S.
As both the compliance officer and president, Gugnin exercised full control over how these companies operated and reported their transactions.
The clients’ funds, often held at sanctioned Russian financial institutions, were converted into Tether (USDT), a stablecoin pegged to the U.S. dollar. This allowed the movement of large sums while avoiding the volatility associated with other cryptocurrencies and making transactions appear less suspicious to financial regulators.
Gugnin and his companies routed these USDT funds through a web of cryptocurrency wallets designed to obscure their origins. From there, he converted them into U.S. dollars or other fiat currencies and moved the proceeds through U.S. bank accounts, particularly banks located in Manhattan.
These multi-step processes ensured the true source of the money—and its Russian sanctioned ties—was concealed.
Gugnin allegedly falsified compliance documents, misrepresented his companies’ dealings, and lied to both banks and exchanges. He claimed that his company had no dealings with Russia or sanctioned entities, even as millions flowed from and to those clients.
He failed to implement anti-money laundering (AML) programs and did not file suspicious activity reports as required under the Bank Secrecy Act. These failures allowed him to operate as an unlicensed money transmitter and evade scrutiny from both U.S. regulators and financial institutions.
To further evade detection, Gugnin reportedly accessed online resources detailing law enforcement tactics and how to spot federal investigations.
Between June 2023 and January 2025, Gugnin’s companies helped launder approximately $530 million in crypto—much of it originating with Tether, and much of it ultimately ending up as U.S. dollars or other hard currencies routed internationally.
Some of the laundered money allegedly went towards acquiring sensitive U.S. technologies for sanctioned end users in Russia, raising significant national security and export control concerns.
Gugnin’s prosecution throws light on vulnerabilities associated with stablecoins and the chronic gaps in AML controls at both crypto exchanges and the broader banking sector.
Gugnin faces a 22-count federal indictment, including wire fraud, bank fraud, sanctions evasion, and operating an unlicensed money transmitting business. Each count carries hefty penalties, with wire fraud and money laundering charges exposing him to up to 30 years in prison per offense.
This case not only reveals the mechanics of a vast crypto laundering network but also signals urgent warnings about the ease with which sophisticated actors can exploit digital assets like Tether to evade global financial regulations.
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