The Investigation Service of Georgia’s Finance Ministry announced the arrest of a manager of an unregistered cryptocurrency service provider who allegedly facilitated uncontrolled international transactions through virtual asset transactions worth tens of millions of USD.
According to the agency, the suspect, whose name has not been identified, “without mandatory registration with the National Bank of Georgia, was conducting virtual asset transactions worth tens of millions of U.S. dollars, including the conversion of virtual assets and cash.” It added that through this activity, the individual “facilitated the uncontrolled international transactions in the country.”
The agency said it seized computer equipment, dozens of bank cards, various types of documents, USD 83,903 and EUR 300 in cash, as well as cryptocurrency worth USD 79,600.
The Investigation Service said the offense falls under Article 192-2-a of Georgia’s Criminal Code, which covers illegal entrepreneurial activities committed by more than one person and carries a prison sentence of three to five years.
“Relevant measures are underway to identify and expose other individuals involved in the criminal activity, as well as to uncover cases of tax evasion and possible legalization of illegal income,” the agency added.
The arrest follows a series of Western sanctions targeting Georgia-based cryptoplatforms over their alleged role in facilitating Russia- or Iran-linked transactions.
On August 9, the U.S. Treasury Department announced sanctions against Georgia-based company SHPS Shelbit [LLC Shelbit], saying the company and its owner, Siavash Kayvanpour, were involved in cryptocurrency transactions linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) and sanctions evasion.
Earlier, on July 23, the European Union imposed sanctions on four Georgia-based crypto-related service platforms as part of its 21st sanctions package against Russia. Three of the platforms had previously been sanctioned by the United Kingdom over what London described as “Russia-focused exchanges seeking to evade sanctions.”
In all three cases, the National Bank of Georgia responded by saying that the platforms in question were outside its regulation, noting that investigative actions had been launched against some of them.
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