A sophisticated, multibillion-dollar money-laundering network operated by two Russian millionaires and utilized by UK criminal gangs has been brought down in an international sting operation led by the National Crime Agency (NCA).
The network, which facilitated illicit transactions for a range of clients, including Russian-speaking hackers, UK drug gangs, and even state entities, represents the most significant money-laundering investigation by the NCA in a decade.
Global Reach of Criminal Finances
Two interconnected groups, known as Smart and TGR, are at the heart of the network. These groups catered to diverse clientele, including cybercriminals seeking to convert cryptocurrency into cash, and UK-based street gangs looking to legitimize physical money.
The Kinahan cartel from Ireland also reportedly used the system to exchange cash for cryptocurrency. Additionally, the network is alleged to have assisted the Russian state by transferring funds to spies stationed overseas. It is further accused of facilitating financial transactions for Russia Today (RT), a state-controlled TV network, to journalists in the UK.
Sanctioned Russian citizens have also exploited the network to disguise the origins of their wealth, enabling them to purchase properties in Britain.
Leaders of the Operation
Smart was operated by Ekaterina Zhdanova, a Russian national born in Siberia who later climbed the ranks in Moscow’s financial sector. Zhdanova, previously sanctioned by the US in 2023, was apprehended in France.
Meanwhile, TGR was led by Georgy Rossi, a former Russian banker who relocated to Europe. Rossi remains at large, with his current whereabouts unknown.
Both individuals reportedly amassed millions of pounds by charging a three percent commission on transactions, which funneled billions of illicit funds across more than 30 countries. Many transactions passed through hubs in the Middle East, including the United Arab Emirates.
Operation Destabilise Uncovers Criminal Links
Operation Destabilise, the NCA’s investigation, has so far resulted in 84 arrests and the seizure of £20 million within the UK. However, the agency estimates that the network would need to launder £700 million to recover its losses.
“For the first time, we have been able to map out a link between Russian elites, crypto-rich cyber criminals, and drugs gangs on the streets of the UK,” said Rob Jones, NCA director general of operations.
One of Smart’s clients was allegedly a Russian ransomware group responsible for attempting to extort at least £27 million from 149 UK entities, including hospitals, schools, businesses, and local authorities.
The NCA collaborated with law enforcement agencies from the US, Ireland, Jersey, and France to dismantle the network. The operation highlights the intricate connections between international crime syndicates and state actors, underscoring the growing challenge of combating global money laundering.
