Georgia Arrests Five Russians Over Illegal Crypto, Money-Laundering Scheme
The Georgian Ministry of Finance has arrested five Russian citizens on charges of illegal entrepreneurial activities and money laundering.
At an October 16 press briefing, Guga Tavberidze, deputy head of the Finance Ministry’s Investigative Service, said an unnamed company “had been providing crypto asset services without proper registration or authorization from the National Bank of Georgia” through an illegal office and by offering a “courier service.” Tavberidze added that over the past several months, the company had conducted transactions involving crypto assets worth “hundreds of millions of lari,” engaging in uncontrolled international transfers.
“The investigation also found that Russian citizens had allegedly been bringing large amounts of foreign currency into Georgia by car, apparently bypassing border controls, to purchase virtual assets and then legalize illicit funds,” Tavberidze said, adding, “Despite the scale of these operations, neither the company nor the individuals involved were found to have made any tax payments to the state budget.”
The ministry official added that authorities seized a total of USD 721,000, along with accounting records, documentation, and computer equipment. The cash was confiscated both from the company’s office and from vehicles bearing Russian Federation license plates.
The investigation is being conducted under Articles 192 and 194 of the Criminal Code of Georgia, which pertain to illegal entrepreneurial activities and the legalization of illegal income, punishable by nine to twelve years in prison.
According to Tavberidze, the investigation is ongoing to identify additional individuals who may have evaded disclosure and to uncover further evidence of illegal activities.
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