Crypto Firm Manager Detained for Illegal Conversion of Millions

Female hand with money at cash desk. Currency exchange concept.

The Investigative Service of the Ministry of Finance of Georgia has arrested the head of a crypto company accused of illegal operations worth tens of millions of dollars, the Georgian service of Radio Free Europe/Radio Liberty reports. According to the agency, the company operated without mandatory registration with the National Bank and engaged in the conversion of virtual assets and cash.

“By carrying out this activity, the accused facilitated uncontrolled international transactions in the country,” the agency stated.

Investigative actions resulted in the seizure of computer equipment, dozens of bank cards, various documentation, cash ($83,903 and €300), and cryptocurrency worth $79,600.

The Investigative Service did not specify the name of the company.

The detainee has been charged under the article on illegal business activity. He faces 3 to 5 years in prison.

According to the Investigative Service, measures are underway to identify and expose other individuals involved in the criminal activity, as well as to uncover instances of tax evasion and potential money laundering.

US Sanctions

On August 7, the United States imposed financial sanctions on Georgia-registered crypto company Shelbit and its owner, Savas Kayvanpour. The grounds for the sanctions were reported to be ties to Iran’s Islamic Revolutionary Guard Corps (IRGC), designated as a terrorist organization in the US.