The National Crime Agency (NCA) has announced the successful dismantling of Russian-operated networks accused of laundering billions of dollars for oligarchs, street gangs, and spies by converting cash into cryptocurrency. 

The operation, unveiled on Wednesday, marks a significant step in curbing global financial crime facilitated by digital currencies, according to a report by Bloomberg.

The complex laundering operation allegedly connected Russian elites, cybercriminals, and UK-based drug gangs, with funds moved across Europe, the Middle East, and South America. The networks used stablecoins, primarily Tether (USDT), to provide clients with stable and liquid transactions, the NCA said.‍

Key Figures and Operations

Central to one network was Ekaterina Zdhanova, a 38-year-old Russian businesswoman who reportedly ran a “concierge service” for wealthy Russians, enabling them to bypass sanctions and move funds globally. Zdhanova, currently in pre-trial detention in France for unrelated charges, was sanctioned by the US Treasury in 2022. According to the US Office of Foreign Assets Control, she moved over $100 million for a Russian oligarch to the UAE and operated a tax residency service for Russian clients seeking to relocate.

Zdhanova’s network, known as “Smart,” along with another called TGR, facilitated illicit transactions for entities such as Russia Today’s UK branch and the Kinahan crime syndicate. The NCA highlighted the use of Tether as a preferred cryptocurrency due to its stability compared to other digital assets.‍

Unprecedented Findings

“For the first time, we have been able to map out a link between Russian elites, crypto-rich cybercriminals, and drugs gangs on the streets of the UK,” said Rob Jones, Director General of Operations at the NCA. “The thread that tied them together – the combined force of Smart and TGR – was invisible until now.”

The operation involved covert surveillance of cash handovers in the UK, followed by the immediate transfer of cryptocurrency equivalent to the cash value. The NCA coordinated 84 arrests globally and seized over £20 million ($25.3 million) in cash and cryptocurrency. The agency estimates that £100 billion is laundered annually through the UK, with £12 billion stemming from criminal cash.