On Wednesday, the U.S. and Britain declared that they had dismantled what they called a worldwide money laundering operation utilized by affluent Russians to circumvent sanctions, with London indicating it also laundered money for drug dealers, criminals, and spies.
According to Britain’s National Crime Agency, a globally coordinated law enforcement initiative dubbed ‘Operation Destabilise’ had disrupted the network that spanned across 30 nations.
The operation also involved law enforcement agencies from France, Ireland, and the United Arab Emirates, according to the NCA. So far, it has resulted in 84 arrests and the confiscation of over 20 million pounds (approximately $25 million) in cash and cryptocurrency.
The network’s influence extended from Britain and mainland Europe to the Middle East and South America, facilitating serious and organized crime globally, reported the NCA.
The U.S. Department of Treasury announced that it had placed sanctions on members of the group, which it stated assisted elite Russians in using cryptocurrency to avoid sanctions imposed after the invasion of Ukraine in February 2022.
Five individuals and four entities linked to “a vast global network of businesses and employees that have enabled significant sanctions evasion,” identified as the TGR Group, were subjected to Treasury sanctions.
“Through the TGR Group, Russian elites aimed to exploit digital assets — especially U.S. dollar-backed stablecoins — to dodge U.S. and international sanctions, thereby further enriching themselves and the Kremlin,” stated Acting Under Secretary for Terrorism and Financial Intelligence Bradley Smith.
The NCA of Britain mentioned that the TGR group functioned in conjunction with another network called “Smart,” which helped sanctioned Russians access the financial system.
“For the first time, we’ve managed to establish a connection between Russian elites, cryptocurrency-rich cybercriminals, and drug gangs operating on the streets of the UK,” remarked Rob Jones, Director General of Operations at the NCA.
“The link that connected them – the combined power of Smart and TGR – had been undetectable until now.”
The U.S. Treasury’s announcement indicated that Smart was led by Ekaterina Zhdanova, who had previously been sanctioned by the U.S. Office for Foreign Assets Control for assisting a Russian client in transferring funds into western Europe via a fraudulently opened investment account and property acquisitions. Her current location remains unknown.
The Treasury also expressed intentions to target George Rossi, a Ukrainian national originally from Russia, whom it believed controlled the TGR Group.
Britain’s NCA noted that the Smart network had previously been employed to finance Russian espionage operations.
Both Smart and TGR were significantly supported by the utilization of cryptocurrency, as reported by the NCA. For instance, it explained that criminal organizations in Russia holding cryptocurrency would connect with drug gangs having equivalent cash sums elsewhere.
The networks would coordinate to ensure that the gangs received virtual currency in exchange for their cash, which would then be laundered out of the country via cash-intensive businesses, such as construction firms.
Following the transaction, the gangs could utilize the cryptocurrency to procure additional drugs or firearms without needing to physically move any cash across borders, according to the NCA.
U.S. Treasury sanctions typically forbid any U.S. persons or entities from engaging in transactions with sanctioned parties and freeze any assets held in the U.S. belonging to those sanctioned individuals or entities.
UK and international law enforcement agencies report that networks have laundered cash and cryptocurrencies for organized crime syndicates across Western nations.
Operatives alleged to be part of a billion-dollar Russian money-laundering operation—used by drug traffickers, financial criminals, and foreign agents—have faced sanctions and arrests in a coordinated global investigation led by the National Crime Agency (NCA).
The NCA, which addresses serious and organized crime, stated that this represented the “most significant money laundering operation” it has conducted in recent years. This initiative included participation from the Federal Bureau of Investigation in the U.S., France’s Direction Centrale de la Police Judiciaire, and Ireland’s Garda.
The networks reportedly laundered both cash and cryptocurrencies for serious and organized crime syndicates in the UK and throughout Western countries, including Russian hacking groups that extract ransom payments from corporations after disabling their computer systems, as well as “Russian elites looking to evade sanctions,” specifically in the UK.
The agency highlighted that the operation had severe real-world consequences, as it was directly linked to the laundering of drug money generated on the streets of the UK.
Overall, Operation Destabilise identified the purported leaders of the laundering networks, leading to the arrest of 84 individuals and the confiscation of over £20 million in cash and cryptocurrencies, according to the NCA.
This was disclosed as the U.S. Office of Foreign Asset Control (OFAC) announced sanctions against several Russian-speaking individuals who were leading the money-laundering organization.
Rob Jones, the NCA’s director general of operations, remarked, “Operation Destabilise has revealed billion-dollar money laundering networks functioning in a manner that was previously unidentified by international law enforcement or regulators.
“For the first time, we have been able to establish a connection between Russian elites, crypto-affluent cybercriminals, and drug gangs operating in the UK. The interconnection linking them together – the combined influence of the [alleged money laundering groups] Smart and TGR – was previously undetectable.”
The NCA reported that Ekaterina Zhdanova, sanctioned last year by OFAC for allegedly aiding ransomware groups in receiving and laundering illicit funds, led Smart. She is believed to have collaborated with George Rossi, the leader of TGR, whose whereabouts remain unknown to the international law enforcement coalition. Rossi’s deputy is Elena Chirkinyan.
The NCA detailed how Smart and TGR laundered money for transnational criminal organizations like the Kinahan family, a crime syndicate reportedly involved in drug and arms trafficking into the UK and globally, which was sanctioned by the U.S. in 2022.
From late 2022 until summer 2023, the Smart network was utilized to finance unspecified Russian espionage activities, as stated by the NCA, while the money launderers also assisted Russian clients in circumventing UK sanctions.
Investigators also uncovered ties to funds being transferred into the UK that originated from the Russia Today (RT) television network, whose owner is sanctioned in the UK.
The money-laundering scheme supposedly operated by passing funds through multiple layers. Russian criminals would convert millions in cryptocurrencies—earned from a series of ransomware attacks—into cash acquired from various illicit dealings in Western economies, including drug transactions in the UK.
This provided Russian criminals with hard currency that could be laundered and returned to them in value. It also enabled Western crime figures to obtain millions in cryptocurrency, facilitating large drug shipments from South America while evading the international banking system.
The NCA further stated, “TGR and Smart coordinated their efforts, with TGR members receiving substantial amounts of cash on behalf of Zhdanova and assisting in the conversion, making the equivalent value available in cryptocurrency.
“One cash courier operation that was investigated conducted cash handovers at 55 different locations across England, Scotland, Wales, and the Channel Islands over a four-month period. They managed this on behalf of at least 22 suspected criminal organizations operating within the UK.”
When asked if these actions would dismantle the network or if key money launderers would simply be replaced, Jones of the NCA commented, “Of course, there is always someone waiting to step in. We fully understand this system now. As individuals fill this gap, we will pursue them.”
An international investigation led by the NCA, named Operation Destabilise, has revealed and disrupted Russian money laundering networks that are supporting serious and organized crime globally, from the UK to the Middle East, Russia, and South America.
Investigators have discovered two Russian-speaking networks that are working together at the center of this criminal operation: Smart and TGR.
Operation Destabilise is being disclosed today as the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announces sanctions against the Russian-speaking individuals leading these networks, as well as against four businesses associated with TGR.
Additionally, a seventh person, who acted as a global money laundering facilitator with strong connections to one of the networks, has been apprehended by the NCA’s international allies.
In addition to supporting criminals in the UK, Smart and TGR leveraged their worldwide reach to launder money for transnational crime organizations such as the Kinahans. This infamous family-led crime syndicate, which is responsible for trafficking drugs and weapons into the UK and beyond, faced sanctions from the US in 2022.
They also assisted Russian clients in illegally circumventing financial restrictions to invest in the UK, posing a threat to the integrity of our economy. From late 2022 to the summer of 2023, the Smart network was utilized to fund Russian espionage activities.
The coordinated efforts of the NCA have already resulted in 84 arrests, many of which are already serving prison terms, in addition to seizing over £20 million in cash and cryptocurrency.
Operation Destabilise uncovered a sophisticated scheme in which the networks raised funds in one country and made the equivalent amount available in another, frequently by converting cryptocurrency into cash.
This provided a mutually advantageous service, facilitating the flow of cash generated by crime groups in Western countries while concurrently laundering cryptocurrency for cyber criminals and assisting Russian oligarchs and elites in evading sanctions.
The UK served as a crucial hub, with the NCA collaborating closely with partners across UK law enforcement to carry out a series of operations related to Destabilise. Investigators observed extensive exchanges taking place throughout the country, where street-level cash transactions were almost immediately followed by the movement of cryptocurrency of equivalent value.
After receiving payment in cryptocurrency for their cash, criminal organizations would use the digital currency to reinvest in their illegal activities, procuring more drugs or firearms without the need to transfer any physical money across borders. The financial services offered to these groups sustained their violent actions, enabling them to inflict significant damage on communities throughout the UK.
Rob Jones, the Director General of Operations at the National Crime Agency, stated:
“Operation Destabilise has revealed billion-dollar money laundering networks functioning in a manner previously unknown to international law enforcement or regulators.
“For the first time, we have been able to trace a connection among Russian elites, cryptocurrency-rich cyber criminals, and drug gangs operating on the streets of the UK. The linking thread between them – the combined influence of Smart and TGR – was previously undetected.
“The NCA and its partners have disrupted this criminal service at all levels. We have identified and targeted the Russians orchestrating the operation at the highest levels, removing the facade of legitimacy that allowed them to blend illicit funds into our economy.
“We have also dismantled the primary coordinators that facilitated the cash-based aspect of their operation in the UK, making it extremely challenging for them to function here and sending a strong message that this country is not a safe haven for money laundering.”
Nik Adams, T/Assistant Commissioner of City of London Police and NPCC lead for economic crime, remarked:
“The networks disrupted by Operation Destabilise were operating in plain sight, embedded within our communities, transferring large sums of money linked to the drug trade and severe violence on our streets.
“Money laundering inflicts serious harm on the British public, depriving society of legitimate funds needed for schools, hospitals, and social services. Under Destabilise, the NCA, along with policing and other partners, has spearheaded UK law enforcement efforts to enhance safety in our communities. Community intelligence and neighborhood policing are vital in how we identify and address those causing the most significant harm in our society, and together we can ensure that crime does not pay.”
Smart is led by Ekaterina Zhdanova, who collaborated closely with Khadzi-Murat Magomedov and Nikita Krasnov to enable money laundering activities.
TGR is managed by George Rossi, with Elena Chirkinyan as his deputy, along with Andrejs Bradens (also referred to as Andrejs Carenoks).
All six individuals have been sanctioned by OFAC in the United States.
Both Smart and TGR have notably strong connections to the Russian financial sector, and although funds were frequently funneled through the Middle East, their extensive global presence spans over 30 countries.
Zhdanova and Magomedov acted as brokers for many of the money laundering transactions. Krasnov coordinated with courier networks in the UK to organize the collection of cash, which was then arranged for conversion.
TGR and Smart synchronized their operations, with TGR members receiving substantial amounts of cash on behalf of Zhdanova and aiding in the conversion process, thus making its equivalent value available in cryptocurrency.
An investigated cash courier network conducted cash transfers at 55 distinct locations across England, Scotland, Wales, and the Channel Islands over a four-month timeframe. They facilitated these operations for at least 22 suspected criminal organizations based in the UK.
A cash courier based in London was directed by Zhdanova and Krasnov, which resulted in the laundering of more than £15 million in illicit funds. The courier, Fawad Saiedi, received a sentence of four years and four months in prison.
Another investigation revealed a large-scale cash courier network led by Semen Kuksov and Andrii Dzektsa, who collaborated with Krasnov. They oversaw couriers to launder over £12 million in the UK within a two-and-a-half month span, as well as managing similar efforts across Europe. Kuksov has been associated with high-traffic cryptocurrency wallets. He and Dzektsa received sentences of five years and seven months, and five years in prison, respectively. One courier tied to Kuksov’s network, Igor Logvinov, was arrested by An Garda Siochana (AGS) in Ireland and sentenced to three years in prison.
The operational activities led by the NCA in the UK caught the attention of criminal networks. By late 2022 and early 2023, members of the networks under investigation reportedly expressed hesitations about continuing operations in London, and by late summer 2024, Russian-speaking laundering networks in the city were charging elevated commission rates, perceiving it as increasingly difficult to operate there.
This activity has proven to be exceedingly costly for the networks, which are assessed to operate on very slim profit margins—often charging as little as 3% commission on the laundered amount. Based on this margin, they would need to launder approximately £700 million at no cost to recover the £20 million that the NCA and its partners have seized.
Smart and TGR offer a service that provides Russian elites, as well as designated individuals and entities, access to Western economies that would be otherwise restricted to them due to sanctions or other financial limitations.
In 2023, Elena Chirkinyan of the TGR Group played a role in hiding the transfer of funds out of Russia, likely to support the endeavors of a Russian-language media organization in the UK. These funds are believed to have come from Russia Today (RT), which is an entity sanctioned by the UK.
In March 2022, Zhdanova collaborated with TGR members to transfer over £2 million into the UK for a Russian client, disguising the source of the funds and circumventing ‘know your customer’ regulations to purchase properties.
Siam Expert Trading Company Ltd., a company based in Thailand linked to Bradens that was also sanctioned by OFAC recently, was involved in exporting electronic components to Russia.
The networks additionally assist Russian cybercriminals in laundering their illicit earnings. In 2021, Zhdanova laundered over $2.3 million of suspected ransomware payments made in cryptocurrency by victims to the Ryuk ransomware group. The NCA estimates that the group, whose members were sanctioned by the UK in 2023, was responsible for extorting at least £27 million from 149 UK victims, including hospitals, schools, businesses, and local authorities. Nonetheless, their actual impact is likely to be much larger.
Smart and TGR’s cryptocurrency addresses demonstrated consistent interactions with Garantex, a cryptocurrency exchange service that the UK and US sanctioned in 2022. Garantex has been associated with payments to firms for components of weaponry utilized by Russia in its assault on Ukraine.
Operation Destabilise was conducted in close partnership with UK law enforcement and international entities, including OFAC, the Federal Bureau of Investigation, the Drug Enforcement Administration, the French Direction Centrale de la Police Judiciaire, and AGS in Ireland. The NCA also collaborated closely with authorities in the UAE to disrupt associated money laundering efforts.
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