Operation Destabilise Disrupts Global Network Used by Criminal Groups to Bypass Sanctions
An extensive investigation spearheaded by the UK’s National Crime Agency (NCA) has uncovered a global network used for money laundering via cryptocurrency, enabling criminal groups, including Russian espionage agents and European drug traffickers, to sidestep international sanctions. The operation, which spanned over 30 countries, targeted two companies—Smart and TGR—that acted as financial hubs for illicit activities ranging from espionage to ransomware funding and transnational crime.
The NCA’s investigation revealed that this network was involved in money laundering operations for high-profile crime syndicates such as the Kinahan cartel, known for its involvement in the illegal drug trade and violent activities in Europe. It also provided crucial financial support for Russian espionage efforts between late 2022 and mid-2023. The operation, dubbed Operation Destabilise, resulted in the arrest of 84 individuals and the seizure of £20 million in cash and digital assets.
The Importance of the Investigation
Rob Jones, Director-General of Operations at the NCA, described this case as one of the most significant money laundering operations in the agency’s history. “This operation exposed a complex money laundering system that combined traditional street cash with cryptocurrency, serving as a vital mechanism for criminal syndicates, state-backed actors, and sanctioned entities to evade the international financial system,” Jones stated.
The Role of Cryptocurrency in Money Laundering
At the core of the laundering operations was the use of stablecoin Tether, a cryptocurrency that is tied to the US dollar and known for its price stability. Criminal couriers transported physical cash across several countries, which was then converted into cryptocurrency to avoid the scrutiny of traditional banking systems. These funds were moved across borders to obscure the origins of the money.
Tether has come under increasing scrutiny from regulatory bodies worldwide due to its role in facilitating illicit financial transactions. The US Treasury Department has raised concerns over the use of digital currencies to bypass sanctions and launder funds in an increasingly globalized financial system.
Sanctioned Figures and Tied Networks
Key figures identified in the laundering network include Ekaterina Zhdanova, the owner of Smart, and her partner TGR, which processed over £2 million for a Russian client attempting to circumvent property purchase checks in the UK. Zhdanova, a business figure from Moscow, was sanctioned by the US Treasury in the previous year and is now in custody in France. TGR, operating in London and Dubai, facilitated the exchange of large sums of physical cash into cryptocurrency for laundering purposes.
Along with Zhdanova, other executives from TGR, including George Rossi, Elena Chirkinyan, and Andrejs Bradens, were sanctioned for their involvement in facilitating illegal financial transactions. Investigators also discovered connections between these networks and Garantex, a crypto exchange linked to Russia’s efforts to secure Western technology amidst its ongoing conflict with Ukraine.
Wider Implications of Crypto Laundering
The NCA’s findings illustrate a disturbing trend of growing collaboration between criminal organizations and hostile state actors. As international sanctions intensify, these groups increasingly turn to cryptocurrency to bypass traditional financial oversight. The NCA estimates that as much as £5 billion in illicit funds are laundered through digital currencies each year in the UK alone.
Furthermore, the investigation revealed how Russian-backed media outlets and ransomware groups were also benefiting from this laundering system, further entangling cryptocurrencies in international security challenges.
Global Cooperation and Future Risks
The operation involved coordinated efforts with international law enforcement agencies, including the US FBI, DEA, and the authorities in France and Ireland. Bradley T. Smith, Acting Undersecretary for Terrorism and Financial Intelligence at the US Treasury, noted the growing role of stablecoins in helping Russian elites and state-sponsored entities evade sanctions and fund activities that support the Kremlin’s objectives.
The findings from this investigation underscore the increasingly sophisticated ways in which both state actors and criminal enterprises are leveraging cryptocurrencies for illicit purposes. As digital assets continue to proliferate, authorities worldwide will face mounting challenges in their efforts to counter the misuse of these technologies.
