UK Uncovers Major Crypto Laundering Scheme Involving Russian Intelligence and Criminal Networks

• Major global crypto-laundering operation tied to Russian intelligence and criminal networks.  
• Tether (USDT) used to bypass sanctions, fueling $5 billion in crypto-based money laundering.  
• 84 arrests, $20M seized, highlighting crypto’s growing role in financial crime and espionage.

The UK’s National Crime Agency (NCA) has uncovered a massive money laundering operation involving Russian intelligence operatives, criminal syndicates, and ransomware groups. The scheme, spanning over 30 countries, utilized cryptocurrency to help bypass sanctions and move illicit funds with unprecedented efficiency. 

The laundering operation, dubbed “Operation Destabilise,” linked two companies, Smart and TGR, which acted as financial intermediaries for various criminal and geopolitical actors. These entities facilitated the movement of illicit funds for numerous organizations, including drug cartels, Russian government agents, and cybercriminals. 

Criminal groups, such as the notorious Kinahan drug cartel, used the network to move large sums of cash. Meanwhile, Russian intelligence agencies leveraged the same pipeline to fund espionage activities, including operations to sidestep international sanctions. 

At the core of the operation was Tether (USDT), a stablecoin pegged to the US dollar, which provided a stable medium for criminals to move large sums of money. Unlike Bitcoin, which experiences price fluctuations, USDT allowed operatives to bypass market volatility, ensuring their illicit transactions remained consistent in value. 

The operation’s vastness was evident in the NCA’s investigation, which revealed that over four months, more than £100 billion in illicit funds were processed through the UK alone. A staggering £5 billion of this sum was linked to cryptocurrency-based laundering, signaling digital assets’ growing role in financial crime.

The NCA’s investigation culminated in the arrest of 84 individuals, including prominent figures like Ekaterina Zhdanova, a Moscow-based businesswoman and leader of TGR.

Zhdanova, allegedly responsible for funneling over $100 million to the UAE on behalf of a sanctioned Russian oligarch, is now in custody in France. TGR’s leadership, including other sanctioned individuals like George Rossi, Elena Chirkinyan, and Andrejs Bradens, played critical roles in facilitating the operation.

Authorities also seized £20 million in cash and crypto assets during the investigation, signaling the scale of the operation and its impact on global financial systems.

The investigation has unearthed connections to Western military technology purchases and arms trade and continues to have wide-reaching consequences. The NCA’s efforts have highlighted the need for international cooperation in tackling crypto-based financial crimes, particularly as more state actors use cryptocurrency to fund illicit activities and circumvent sanctions.