An international money-laundering network operating out of Moscow and Dubai has been exposed for facilitating billions in illicit transactions, including cryptocurrency and cash, to support global criminal activities, Britain’s National Crime Agency (NCA) revealed on Wednesday.
The network, run by two criminal enterprises—TGR Group and Smart—has links to Russian ransomware groups and major organized crime syndicates. Key figures, including George Rossi, founder of TGR, and Ekaterina Zhdanova, leader of Smart, have been sanctioned by the United States.
The laundering network specialized in converting “dirty crypto” amassed by Russian ransomware groups into cash for criminal gangs, allowing the latter to clean their proceeds from illicit activities. The scheme reportedly used Tether cryptocurrency for its stability and ease of transfer.
The NCA reported that ransomware groups associated with the network extorted at least $34 million from 149 U.K.-based victims, including hospitals, schools, and businesses. Meanwhile, gangs such as Ireland’s Kinahan cartel used the system to launder proceeds from drug trafficking and other crimes.
The investigation, dubbed Operation Destabilise, has been underway since 2021, involving law enforcement agencies from the U.K., Ireland, the U.S., and France. So far, 84 individuals linked to the operation have been arrested, including members who facilitated cash-for-crypto exchanges across Europe.
In September 2023, the NCA arrested key operatives, including Andrii Dzektsa, 28, and Semen Kuksov, 24, son of Russian oil executive Vladimir Kuksov. Both were tied to Zhdanova’s Smart network.
Zhdanova, who has been sanctioned for laundering funds for Russian elites and ransomware groups, was reportedly arrested in France last year in a separate case.
The network allegedly supported various criminal enterprises, including funding multi-ton cocaine shipments from South America and Russian espionage operations from late 2022 to mid-2023.
“This billion-dollar network operated with a level of sophistication previously unseen in international money laundering,” said Rob Jones, NCA Director General of Operations.
Both TGR and Smart operated from Federation Tower in Moscow, a heavily fortified building housing companies that specialize in converting cryptocurrency into cash. The laundering process often involved moving cash through shell companies linked to TGR and transferring it via the traditional banking system to Russia.
The use of cryptocurrencies like Tether has replaced Bitcoin in such operations due to its perceived stability and lower risk. This trend highlights the evolving tactics of money-laundering networks, posing challenges for regulators and law enforcement.
While several key players have been arrested, including Zhdanova, George Rossi’s whereabouts remain unknown. Investigators continue to unravel the full extent of the network, emphasizing the global scale and impact of its operations.
“This case underscores the critical need for international collaboration to dismantle financial pipelines fueling criminal enterprises,” said NCA Head of Cyber Intelligence, Will Lyne.
The investigation continues, with authorities working to disrupt the remaining elements of the network and prevent further exploitation of global financial systems.
05th Dec 2024
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