An international investigation has revealed the details of an alleged Russian billion-dollar money laundering network that authorities claim spanned across more than 30 countries. The operation, known as Operation Destabilise, seized nearly 20 million British pounds in both cash and cryptocurrency. The investigation resulted in the arrests of 84 suspects by the UK's National Crime Agency (NCA).
According to the NCA, the alleged networks known as Smart Group and TGR Group played a crucial role in enabling criminals and wealthy Russians to convert cash to cryptocurrency and vice versa. These networks' influence reportedly extended from the UK to regions such as the Middle East, Russia, and South America, allowing them to hide the source of funds and evade sanctions, particularly those imposed after Russia's invasion of Ukraine in February 2022. The NCA also suggested that these networks facilitated the exploitation of digital assets to circumvent sanctions, enriching both the individuals involved and the Kremlin.
Authorities have claimed that the alleged money laundering networks had links to criminal groups such as the Kinahans, a family-run crime syndicate sanctioned by the US in 2022. The Kinahans were implicated in activities like drug and firearm trafficking and assisting Russian clients in bypassing financial restrictions to invest in the UK. The NCA further alleged that the Smart network was utilized to finance Russian espionage operations between 2022 and 2023. The operation revealed a complex scheme wherein funds were collected in one country and transferred to another by converting cryptocurrency into cash, aiding in the movement of illicitly generated funds by crime groups.
The NCA identified Ekaterina Zhdanova as the leader of the Smart network and George Rossi as the head of TGR. While Zhdanova has been arrested in France for unrelated charges, Rossi's whereabouts remain unknown to authorities. These individuals, alongside their associates, have been subjected to sanctions by the Office of Foreign Assets Control in the US. The NCA alleges that a significant portion of the money laundering transactions were orchestrated by Zhdanova and her associates, highlighting the coordinated activity between TGR and Smart in facilitating currency conversions.