UK-Led Investigation Exposes Global Crypto Money Laundering Network
A wide-reaching investigation led by the National Crime Agency (NCA) in the UK has uncovered a global money laundering network that has been used by Russian spies and European drug traffickers to evade sanctions through the use of cryptocurrency. The operation, which spanned over 30 countries, targeted two companies – Smart and TGR – that have been identified as financial hubs for illegal activities, including espionage, ransomware funding, and organized crime.
According to the NCA, the network has been facilitating money laundering for various criminal groups, such as the Kinahan cartel, which has been linked to Irish cocaine trafficking and contract killings, as well as Russian espionage operations from late 2022 to mid-2023. This investigation, named “Operation Destabilise,” resulted in the arrest of 84 individuals and the seizure of £20 million in cash and cryptocurrency.
Rob Jones, the NCA’s Director-General of Operations, described this case as the agency’s most significant money laundering investigation to date, highlighting its scale and complexity. “This is a laundromat that brings together physical cash and cryptocurrency, which then crosses into the realms of espionage, transnational organized crime, and elite money laundering,” Jones explained.
Cryptocurrency at the Center of Operations
The network primarily used the stablecoin Tether for their money laundering activities due to its dollar backing, which ensures the retention of its value. Couriers would collect cash in the UK and other countries, which would then be converted into cryptocurrency and transferred across borders to evade traditional banking scrutiny.
Tether, which has become a preferred cryptocurrency among criminals, has faced increased scrutiny due to its ties to money laundering networks. In fact, the US Treasury has highlighted the growing use of digital assets by sanctioned entities as a means to evade restrictions.
Involvement of High-Profile Individuals and Sanctioned Networks
At the core of this network’s operations was Ekaterina Zhdanova, the owner of Smart, who worked closely with TGR to move over £2 million for a Russian client, bypassing property purchase checks in the UK. Zhdanova, a business figure based in Moscow, was sanctioned by the US last year and is currently in custody in France. TGR, with headquarters in London and Dubai, was responsible for processing physical cash on her behalf, enabling large-scale money laundering operations.
Zhdanova and TGR executives, including George Rossi, Elena Chirkinyan, and Andrejs Bradens, were also sanctioned by the US Treasury for their roles in assisting Russian elites and state-backed groups in using stablecoins to evade sanctions. Investigators also uncovered ties to Garantex, a crypto exchange that has been linked to Russia’s procurement of Western technology for its invasion of Ukraine.
Broader Implications of Cryptocurrency Money Laundering
The NCA has highlighted how this network is a prime example of the increasing collaboration between hostile states and organized crime, as sanctions push entities to explore alternative financial systems. This case also sheds light on the growing role of cryptocurrency in global money laundering, with the NCA estimating that up to £5 billion of illicit funds are laundered through digital currencies annually in the UK alone.
In addition to criminal networks, this operation has also revealed how sanctioned Russian state media and ransomware groups have been able to benefit from the money laundering infrastructure, further entangling digital assets in global security concerns.
International Cooperation and Future Risks
The investigation involved cooperation from international partners, including the US Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and law enforcement agencies from France and Ireland. Bradley T. Smith, the acting Undersecretary for Terrorism and Financial Intelligence at the US Treasury, remarked on how stablecoins have been exploited by Russian elites to evade sanctions and fund Kremlin-backed activities.
These revelations highlight the increasing sophistication of criminal and state-backed actors in their use of cryptocurrency. As the use of digital currencies continues to grow, authorities are faced with mounting challenges in countering their exploitation for illicit purposes.
This news article was distributed by https://pressat.co.uk/