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The United Kingdom, through its National Crime Agency (NCA), has dismantled a money laundering scheme that connected Russian spies and European traffickers.
This operation, dubbed “Operation Destabilize,” reveals how cryptocurrencies have become key tools to evade economic sanctions and finance illicit activities.
Global criminal networks based in London, Moscow and Dubai
The multi-million dollar scheme operated from three key cities: London, Moscow and Dubai. This financial triangle allowed international criminals to move money quickly and discreetly.
The companies involved, Smart and TGR, served as intermediaries between drug traffickers, Russian cybercriminals and sanctioned individuals. According to the NCA, the network operated in more than 30 countries and took advantage of the growing adoption of cryptocurrencies to circumvent control of the global banking system.
The Irish Kinahan cartel and ransomware groups used this system to launder money and finance their operations. Additionally, the network facilitated Russian espionage activities from late 2022 to summer 2023.
Key figures behind the scheme
Ekaterina Zhdanova, a Moscow businesswoman, played a central role in the scheme. Accused of moving more than $100 million to the United Arab Emirates for a sanctioned oligarch, Zhdanova is in custody in France.
Pictured is Ekaterina Zhdanova, owner of Smart, who is alleged by the NCA to have collaborated with TGR to transfer more than £2m to a Russian client, helping him bypass checks to buy British property. Source: Financial Times
His company, TGR, operated in both London and Dubai, receiving large amounts of cash to convert into Cryptocurrency.
Others implicated include George Rossi, Elena Chirkinyan and Andrejs Bradens, TGR executives sanctioned by the US Treasury Department. These individuals helped facilitate transactions aimed at the purchase of property in the United Kingdom and the acquisition of technological components for weapons used in the Russian invasion of Ukraine.
Tether: the favorite cryptocurrency of criminals
The investigation revealed that Tether, a cryptocurrency pegged to the US dollar, has replaced Bitcoin as the most used asset by criminals.
Its stability against the dollar ensures that the value of laundered money does not depreciate during transactions. Although Tether condemned the illicit use of its stablecoins, evidence shows that its platform has become a key tool for criminal networks.
A bidirectional scheme
Smart and TGR’s business model included the use of couriers who collected large sums of cash in the UK. In exchange, the companies provided equivalent cryptocurrencies, mainly Tether.
The cash was later laundered through shell companies, while the digital funds were transferred to other countries.
This system offered mutual benefits: drug traffickers could cleanse their income, while cybercriminals and Russian elites evaded economic sanctions and accessed cash. According to Rob Jones, chief operating officer of the NCA, this case mixes elements of espionage, organized crime and money laundering on an unprecedented scale.
Financial impact and measures taken
The NCA estimates that more than £100 billion is laundered annually in or through the UK, of which up to £5 billion involves cryptocurrency.
This amount has grown significantly since the pandemic, when travel restrictions made the physical movement of money difficult.
Under Operation Destabilize, authorities arrested 84 people, seized £20 million in cash and cryptocurrency, and sanctioned five people and several companies. Additionally, the effort included collaboration with the FBI, DEA, and police agencies in France and Ireland.
Connections to espionage and the conflict in Ukraine
The network not only served for money laundering, but also to support Russian espionage activities. According to the NCA, funds moved through these platforms helped finance Kremlin-controlled media groups and acquire Western technology used in the conflict in Ukraine.
Ken McCallum, director general of MI5, warned about the growing use of criminals as intermediaries in sabotage and espionage operations led by Russia and Iran.
This case confirms how cryptocurrencies and illicit networks are intertwined in activities that threaten global security.
In summary
“Operation Destabilize” marks a milestone in the fight against transnational financial crime. However, it also highlights the need for stricter regulation in the cryptocurrency space.
International collaboration will be essential to prevent the use of digital assets in illicit activities and protect the integrity of the global financial system.
The case demonstrates that while cryptocurrencies offer legitimate opportunities, they are also a powerful weapon in the hands of those seeking to evade the law.
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