UK Uncovers Multibillion-dollar Russian Crypto Laundering Scheme

A UK-led investigation has dismantled a sprawling money laundering network facilitating illicit activities for drug cartels, cybercriminals, and Russian espionage operations. Dubbed "Operation Destabilise," the investigation exposed how London, Moscow, and Dubai served as hubs for the multibillion-dollar scheme.

The UK's National Crime Agency (NCA) identified two key players, Smart and TGR, as financial conduits enabling criminals to bypass global banking systems via cryptocurrency. From late 2022 to mid-2023, these entities supported clients such as the Kinahan cartel and Russian intelligence services.

NCA officials revealed that the network operated in over 30 countries, using cryptocurrencies like Tether to transfer illicit funds. This dual-purpose operation simultaneously benefited cash-rich drug traffickers and sanctioned Russian actors, highlighting a growing alliance between organized crime and hostile states.

“This is the most significant money laundering operation we've ever undertaken,” said Rob Jones, NCA director-general of operations. He described the network as a sophisticated "laundromat" blending espionage, organized crime, and cybercrime, reminiscent of modern spy thrillers.

The scheme relied on couriers to exchange cash for cryptocurrency, which was then laundered through shell companies. This method helped criminals preserve the value of their funds while evading sanctions. Tether's stability against the US dollar made it the preferred currency for these activities.

Key figures in the scheme include Ekaterina Zhdanova, a Moscow-based businesswoman accused of moving over $100 million for sanctioned oligarchs. Zhdanova, now in French custody, reportedly collaborated with TGR to bypass regulatory checks and purchase UK properties.

Authorities have arrested 84 individuals and seized £20 million in cash and cryptocurrency. The operation also implicated major actors like Cantor Fitzgerald, a Wall Street brokerage that holds a 5% stake in Tether. Tether, however, condemned any illegal use of its platform.

The NCA emphasized the broader implications, citing links to sanctioned crypto exchanges and Russian procurement of Western technology for its war in Ukraine. The case conveys the increasing role of cryptocurrencies in global crime and the challenge of regulating this evolving threat.