TBILISI, August 7 – Authorities in Georgia have arrested three senior managers of a virtual asset service provider accused of operating illegally without mandatory registration.
The arrests were announced by the country’s Investigative Service under the Ministry of Finance.
According to investigators, the company in question operated through online platforms, mobile applications, and physical offices in Georgia and internationally, without registering with the National Bank of Georgia, as required by law.
Interpressnews reports, the investigation found that the company facilitated the exchange of virtual assets and cash, enabling uncontrolled cross-border financial transactions. The total volume of cryptocurrency transactions reportedly reached the equivalent of several hundred million Georgian lari (GEL).
Despite generating significant revenue, the company failed to pay taxes to the state, according to authorities. Large amounts of cash and computer equipment was seized, as well as documentation from offices in Tbilisi. Assets belonging to the suspects have also been frozen.
The three are charged under Article 192, part 2a, of the Criminal Code, about unlicensed entrepreneurial activity, which can be sentenced with from three to five years in prison.
The investigation continues in order to identify further individuals involved and reveal possible tax evasion, as well as money laundering, according to a ministry statement.
