Crypto Laundering Ring Tied to Drug Trade, Espionage
An international investigation has dismantled a Russian money laundering network linked to organized crime and sanctioned elites.
The operation was led by the UK’s National Crime Agency (NCA) and involved US and European authorities. A total of 84 people were arrested and more than £20 million (approximately $25.4 million) in cash and cryptocurrency was seized.
Authorities destabilize money laundering networks
Two Moscow-based exchanges, Smart Group and TGR Group, are key to cryptocurrency money laundering networks. These platforms convert illicit cash into Untraceable digital assets, promote crime Examples include drug trafficking and espionage financing. Authorities revealed that even state operations used these exchanges to evade international sanctions.
“For the first time we were able to draw out the links between the Russian elite, cryptocurrency-rich cybercriminals and British street drug gangs. The thread that tied them together – the combined forces of Smart and TGR – has until now been Invisible.” explain Rob Jones, Director of Operations, National Crime Agency.
Ekaterina Zhdanova, head of the Smart Group, was arrested in France, while George Rossi of the TGR Group remains at large. They have since been sanctioned by the U.S. Treasury Department for assisting sanctions evasion and money laundering. The network operates in over 30 countries, leveraging cryptocurrency anonymity Hidden illicit funds.
Another branch of the investigation revealed that they also cooperated with a cash courier network run by Semen Kuksov and Andrii Dzektsa. Their couriers laundered more than £12 million (approximately $15.26 million) in the UK in just two and a half months and managed similar operations across Europe.
Kuksov is associated with high turnover cryptocurrency wallet, and Jackca were sentenced to five-and-a-half and five years in prison respectively. One courier, Igor Logvinov, was arrested in Ireland and sentenced to three years in prison.
The emergence of Russian networks
this repression has The networks have since come under intense financial pressure. By mid-2024, it was reported that Russian-speaking money laundering gangs operating in London were charging high commissions, reflecting the increasing difficulty of working in the capital.
“The networks disrupted by destabilization operations hide in plain sight and operate within our communities, diverting huge amounts of money linked to the drug trade and serious violence on our streets,” explain Nik Adams, Assistant Chief Constable of the Metropolitan Police and Head of Economic Crime at the NPCC.
However, this case is not isolated. In September, the U.S. Department of Justice charged Russian nationals Sergey Ivanov and Timur Shakhmametov laundered more than $1 billion through illegal cryptocurrency platforms. these exchanges Enable cybercrime and allow sanctioned entities to bypass restrictions. On December 4, the U.S. Treasury also Sanctioned TGR Group aids Russian elites.
The Financial Action Task Force (FATF) has called for stricter regulation of virtual assets. Updated recommendations call for regulation of virtual asset providers Fight financial crime Effectively. At the same time, the success of the NCA operation highlights growing international cooperation in combating cryptocurrency money laundering.
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