Georgian Authorities Detain Five Russians in Major Crypto Fraud and Money Laundering Bust

Authorities in Georgia, a country in the South Caucasus, announced on Thursday the arrest of five Russian nationals accused of operating an unlicensed cryptocurrency enterprise and laundering money through illegal financial avenues.

The Finance Ministry of Georgia reported that this group was conducting a virtual asset service from an unregistered office and utilizing unauthorized “courier” networks, all without the approval of the National Bank of Georgia. The identities of the five individuals and the company linked to these accusations were not disclosed.

According to a statement from the investigative branch of Georgia’s Finance Ministry, the group had engaged in virtual asset transactions totaling hundreds of millions of lari over recent months, enabling uncontrolled international transfers within the country.

To put it in perspective, one hundred million lari is approximately equivalent to $37 million.

Georgian officials indicated that the Russians managed to transport substantial amounts of foreign currency into Georgia by car, successfully evading border checks. This money was reportedly used to acquire digital assets, which were then employed to legitimize these funds.

Despite the large scale of the operation, tax authorities reportedly found no records of any payments or filings from those involved.

Police conducted raids at multiple sites in Tbilisi, the capital of Georgia, resulting in the confiscation of $721,000 in cash, company documents, and computer equipment, as reported by officials.

The five Russian citizens could face sentences of up to 12 years in prison for unauthorized business operations and money laundering. Georgian authorities revealed that they were pursuing additional suspects and investigating potential tax evasion cases.

The Russian Interests Section at the Swiss Embassy in Georgia, which has acted as the de facto embassy since 2008, has yet to comment on the arrests.