Investigation Service of the Ministry of Finance of Georgia detained three managers of an unregistered virtual asset service provider. The company under the control of the accused was operating through an online platform, application, and service offices in Georgia and various countries worldwide without the mandatory registration at the National Bank of Georgia.

investigation determined that the company was carrying out the conversion of virtual assets and cash, facilitating uncontrolled international transactions within the country. Moreover, the company was carrying out virtual asset transactions equivalent to hundreds of millions of GEL.

Despite generating substantial revenues, the company has not made any recorded tax payments to the state budget. As a result of investigative activities, the property of the abovementioned individuals have been freezed, and a significant amount of cash, computer equipment, and documentation were seized from offices located on David Aghmashenebeli Avenue in Tbilisi.

The offense is provided for in the Article 192, part 2, sub-paragraph “a” of the Criminal Code of Georgia, which as a type and extent of sentence, envisage imprisonment from three to five years.

Appropriate procedures are being carried out in order to identify and expose other individuals involved in the criminal activity, as well as to detect episodes of tax evasion and the possible legalization of illicit income.

Investigation Service of the Ministry of Finance of Georgia continues to implement a strict criminal justice policy against crimes committed in the financial-economic sphere.