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.
The company was registered in Georgia on April 29, 2025, listing its address in the Free Industrial Zone of the Tbilisi Technology Park.
On June 26, 2026, the company applied to the registry requesting the cancellation of its registration, a process that was finalized on July 30.
On August 10, the director of PB Service told Radio Free Europe/Radio Liberty that they had no direct personal communication with Kayvanpour, and that his details had been passed to them by a third party (their foreign partner firm).
Following the imposition of sanctions against the company, US Congressman Joe Wilson stated that this served as proof of Iran using Georgian companies to evade sanctions, aided by the Georgian Dream party.
UK and EU Sanctions
Earlier, in May and July, the United Kingdom and the European Union imposed sanctions on Georgian-registered companies that they claimed were being used by Russia to circumvent sanctions.
Among these companies:
- AIFORY: registered in the business registry in 2023. The owner was Georgian citizen Giorgi Nutsubidze; however, according to the latest registry extract from 2024, the owner is Mikhail Gevorkyan (also a Georgian citizen).
- ARVIX: a firm registered in 2023; the owner is Tamaz Garayev.
- RAPIRA: registered in 2022. British citizen Ilias Akhaev is listed as the owner. On May 13, 2026, he applied to the business registry to liquidate the limited liability company. In the relevant registry extract, he is referred to as the “liquidator.”
Position of the National Bank
On August 10, Vice President of the National Bank of Georgia Nino Jeladze stated that “the entity sanctioned by the US Department of the Treasury, as well as the companies previously sanctioned by the UK and the European Union, were never registered with the National Bank of Georgia.”
“The evasion of registration by several sanctioned companies further confirms that the regulatory framework of the National Bank and its market entry requirements are strict. The registration process includes a detailed verification of the company’s business model, beneficial owners, origin of funds, transaction monitoring systems, and other requirements. That is precisely why this framework serves as an important preventive mechanism and an effective filter against entities that may be linked to illegal activity,” Jeladze stated.
According to her assessment, any entity lacking appropriate registration, carrying out such activities without a license, and engaging in illegal entrepreneurship “naturally cannot fall under the regulation and supervision of the National Bank.”
