Five Russian Nationals Detained in Georgia Over Alleged Illegal Bitcoin Business and Money Laundering

• Five Russian citizens detained for operating an illegal cryptocurrency service and laundering funds in Georgia.

• Authorities report unlicensed virtual asset transactions worth hundreds of millions of GEL and large-scale cash smuggling to purchase cryptocurrencies.

• Investigators seized $721,000 in cash, accounting records and computer equipment; suspects may face up to 12 years in prison under Georgia’s Criminal Code.

Russian crypto criminals apprehended in Georgia — five Russians detained for illegal crypto trading and money laundering; read COINOTAG’s report for details and next steps.

Published: 2025-10-17 | Updated: 2025-10-17 | Author: COINOTAG

What is the case of Russian crypto criminals apprehended in Georgia?

Russian crypto criminals apprehended in Georgia refers to a criminal investigation in which five Russian passport holders were detained after the Investigation Service of the Georgian Ministry of Finance, in coordination with the Prosecutor General’s Office, uncovered an unlicensed digital-asset business and a cash-smuggling scheme used to purchase cryptocurrencies. The operation involved hundreds of millions of GEL in virtual asset transactions and resulted in seizures and criminal charges.

How did investigators identify the scheme and what evidence was found?

Georgian authorities established that the suspects operated through a domestic company providing unlicensed digital asset services from a physical office and an illegal “courier” service. Investigators executed searches in Tbilisi, seizing $371,000 in cash, accounting records, documentation and computer hardware, plus an additional $100,000 intended for coin purchases and $250,000 found in vehicles with Russian license plates—totaling $721,000 in seized funds. The Investigation Service stated the firm was not registered with or authorized by the National Bank of Georgia. Quotations attributed to the Investigation Service outline that “the company carried out virtual asset transactions worth hundreds of millions of GEL,” indicating large-scale, cross-border activity.

How large were the transactions and what does that mean in USD?

Authorities reported virtual asset transactions valued at hundreds of millions of GEL. Using published exchange-rate reporting by Moscow Times, 100 million Georgian lari (GEL) is approximately $37 million, which contextualizes the scale of the reported activity. This conversion indicates the scheme involved tens of millions of US dollars in crypto transactions across months, according to the investigative statement.

Frequently Asked Questions

Were the arrested individuals formally charged and what penalties do they face?

The detained Russian citizens face criminal investigation under several articles of Georgia’s Criminal Code. The Georgian Treasury indicated those who organized the illegal crypto scheme may face prison sentences of up to 12 years, with investigators pursuing additional facts related to tax evasion and possible legalization of illegal income.

How did the suspects bypass border controls to fund crypto purchases?

According to the Investigation Service and Georgian public broadcaster 1TV, the suspects transported large amounts of foreign currency into Georgia by car, hidden to avoid border controls. That cash was then used to buy cryptocurrencies through the unlicensed service, effectively laundering the funds into digital assets.

Context and authoritative sources

This account is based on statements from the Investigation Service of the Georgian Ministry of Finance, the Prosecutor General’s Office, Georgian Treasury releases, and reporting by Moscow Times and 1TV. The Russian Interests Section at the Swiss Embassy in Georgia had not issued a public comment at the time of reporting. Local media earlier reported a separate crypto-related flight from Georgia in March involving an aide to a former prime minister, as reported by Cryptopolitan. These references are provided as named sources and are not linked.

Key Takeaways

• Detentions and seizures: Five Russian nationals were detained and investigators seized $721,000, records and digital equipment during searches in Tbilisi.
• Unlicensed operations: The operation ran an unregistered digital-asset service and used an illegal courier mechanism to process large, uncontrolled international transactions in Georgia.
• Legal and enforcement response: Prosecutors are pursuing charges that could carry up to 12 years’ imprisonment; authorities continue the probe to identify additional participants and tax-evasion elements.

Conclusion

The case of Russian crypto criminals apprehended in Georgia highlights enforcement action against unlicensed virtual-asset services and cross-border cash smuggling used to convert physical currency into cryptocurrencies. Georgian authorities emphasize strict criminal justice measures in financial-economic crimes and continue investigations to uncover broader networks and tax irregularities. COINOTAG will monitor official updates from the Investigation Service, Prosecutor General’s Office, and Georgian Treasury for further developments and publish follow-up reporting as new facts are confirmed.