A sprawling multi-billion-pound money-laundering operation linking Russian oligarchs to UK crime groups, rogue financial firms, and international criminal syndicates has been dismantled in a groundbreaking British-led investigation. The operation, codenamed “Destabilise,” has led to 84 arrests across 30 countries, with 71 individuals apprehended in the UK.
The National Crime Agency (NCA), spearheading the investigation, has seized £20 million in cash and uncovered a sophisticated scheme involving two Moscow-based financial networks, Smart and TGR. These networks facilitated money laundering for transnational crime organizations, including the notorious Kinahan crime syndicate, known for smuggling drugs and firearms into the UK.
Rob Jones, Director General of Operations at the NCA, said: “Operation Destabilise has exposed billion-dollar money-laundering networks operating in a way previously unknown to law enforcement. We have been able to map out a link between Russian elites, crypto-rich cybercriminals, and drugs gangs on the streets of the UK.”
The NCA’s investigation revealed that these networks enabled Russian elites to bypass Western sanctions, laundering money through cryptocurrency exchanges and physical cash couriers. Funds were collected in one country and exchanged for equivalent values in another, often converting crypto into cash or vice versa. This method streamlined illicit transactions, allowing drug gangs and cybercriminals to operate with minimal risk of detection.
Crypto and Crime: A Dangerous Nexus
The networks also played a pivotal role in facilitating cybercrime. In one instance, Smart, led by Ekaterina Zhdanova in collaboration with Khadzhi-Murat Magomedov and Nikita Krasnov, laundered over £1.8 million in cryptocurrency linked to Ryuk ransomware attacks. The Ryuk group extorted at least £27 million from 149 UK victims, including hospitals, schools, and local councils.
In addition to cybercrime, the networks enabled street-level cash handovers, often associated with drug deals, to be immediately converted into cryptocurrency. This virtual currency was then used to purchase more drugs or firearms, bypassing the need to physically transport cash across borders.
High-Profile Arrests and Convictions
The operation has resulted in several high-profile convictions. A London-based courier, Fawad Saiedi, was sentenced to four years and four months for laundering over £15 million in drug money. Another cash courier network, led by Semen Kuksov and Andrii Dzektsa, laundered at least £12 million in just two and a half months. Kuksov was jailed for five years and seven months, while Dzektsa received a five-year sentence.
Global Reach, Local Impact
The networks’ reach extended to over 30 countries, with a significant portion of illicit funds routed through the UAE. However, the UK served as a critical hub for their operations. The NCA and its partners have targeted every level of the network, from the Russian elites orchestrating the scheme to the UK-based coordinators managing cash flows.
“We have identified and acted against the Russians pulling the strings at the very top,” Jones added. “We also took out the key coordinators that enabled the cash element of their operation in the UK, making it extremely difficult for them to operate here.”
The operation marks a significant victory in the fight against organized crime, but authorities warn the scale of such activities is likely much larger than currently uncovered.