Source: www.databreachtoday.com – Author:
Finance & Banking , Fraud Management & Cybercrime , Industry Specific
French Police Reportedly Detain Accused Ryuk Money Launderer Ekaterina Zhdanova Akshaya Asokan (asokan_akshaya) • December 4, 2024
An international investigation led by the U.K. busted two Russian money cash-for-crypto laundering networks in an operation that’s led to the arrest of 84 individuals and U.S. sanctions against others.
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The U.K. National Crime Agency said Wednesday that money-laundering networks called “Smart” and “TGR” collaborated to move billions of dollars annually, primarily through the use of cryptocurrency.
The networks funneled cash from British criminals into a series of international business accounts while paying off the criminals with cryptocurrency. Russians cut off from the international financial system due to criminal activity or intensified sanctions following the Kremlin’s invasion of Ukraine were able to use the cash to circumvent Western restrictions. The two networks had touch points across the world, including the U.K., the Middle East, Russia and South America.
“Operation Destabilize” has also led to the seizure of 20 million pounds worth of cash and cryptocurrency, the NCA announced.
“For the first time, we have been able to map out a link between Russian oligarchs and elites, crypto-rich cyber criminals, and drugs gangs on the streets of the U.K. The thread that tied them together – the combined force of Smart and TGR – was invisible until now,” the NCA said.
Russian national Ekaterina Zhdanova, the alleged head of Smart, was arrested in France as part of the operation, CNN reported. The suspected money-launderer came under U.S. Department of the Treasury’s sanctions in Nov. 2023 for laundering millions of dollars, including for Ryuk ransomware group. British police on Wednesday said that Zhdanova moved $2.3 million of suspected ransomware payments on behalf of a Ryuk affiliate. “The deployment of ransomware remains the greatest cybercrime threat, the largest cybersecurity threat and is a threat to U.K.’s national security,” the NCA said.
The Treasury on Wednesday additionally sanctioned a Ukrainian national suspected of controlling TGR, as well as two Russian national associates of Zhdanova, Khadzi-Murat Dalgatovich Magomedov and Nikita Vladimirovich Krasnov.
Also newly under sanction are four TGR subsidiaries in the U.K., Russia, Thailand and the UAE that ran cryptocurrency trading, foreign exchange market payments, concierge services and electronic equipment shipping to Russia.
The U.K. was a major hub for the networks, which relied on street-level cash handovers followed by cryptocurrency transactions of the same value almost immediately.
One money laundering network conducted cash handovers in 55 different domestic locations, British police said.
“After being paid in crypto in exchange for their cash, criminal gangs would use the virtual currency to reinvest in their illicit business, buying more drugs or firearms without the need to move any physical money across borders,” the NCA said.
British authorities arrested seven associates of the Russian networks.
These include Semen Kuksov and Andrii Dzektsa, who managed cash couriers. They laundered more than an estimated 12 million pounds in 74 days and admitted to running an underground cryptocurrency exchange.
Additionally, authorities confiscated over 1.3 million pounds and $500,000 of cryptocurrency from the duo. Both have been arrested and sentenced to five years and seven months.
Original Post url: https://www.databreachtoday.com/russian-money-laundering-services-busted-in-uk-led-operation-a-26974
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