The U.K. National Crime Agency (NCA) has made a significant breakthrough in an international money laundering investigation, leading to the disruption of Russian crypto networks used to fund illicit activities. Dubbed “Operation Destabilise,” the operation targeted two Russian-speaking money laundering groups, Smart and TGR, which were responsible for facilitating serious organized crime across the U.K., Middle East, Russia, and South America. The investigation resulted in the arrest of 84 suspects and the seizure of £20 million ($25.4 million) in cash and cryptocurrency.
These criminal networks were based in Moscow’s Federation Tower, a known hub for money laundering operations. The NCA, in collaboration with international partners, uncovered the scale and complexity of these illicit activities, which included sanctions evasion and financial crimes involving digital assets. The TGR Group, in particular, utilized U.S. dollar-backed stablecoins to bypass international sanctions and further enrich Russian elites, all while supporting the Kremlin’s agenda.
In addition to the arrests, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned five individuals and four entities linked to the TGR Group. One of the key individuals, Ekaterina Zhdanova, has been previously sanctioned for her role in laundering cryptocurrency proceeds for cybercriminals, including those connected to the now-defunct Ryuk ransomware group. The TGR Group’s services included converting illicit funds into digital assets and facilitating the purchase of properties in the U.K. by Russian elites, helping them bypass financial restrictions imposed by Western governments.
The NCA’s findings also revealed that the Smart network funded Russian espionage activities between late 2022 and summer 2023, although the precise details of these operations remain classified. The investigation, which highlights the growing connection between Russian elites, cybercriminals, and drug gangs, underscores the critical role that cryptocurrency plays in modern financial crime. For the first time, authorities have successfully mapped out the hidden linkages between these groups, exposing the combined threat of Smart and TGR in facilitating sanctions evasion and money laundering.
Reference:
