In a significant international operation, British authorities have dismantled a multi-billion pound money laundering ring, exposing a complex network used by Russian millionaires and UK-based drug dealers to conceal illicit funds. This sophisticated system, utilized by Russian-speaking cybercriminals and British street gangs alike, has been brought down in what is being hailed as the UK’s largest money laundering investigation in a decade.
The intricate scheme, operated by two primary networks known as Smart and TGR, facilitated the conversion of cryptocurrency into cash and assets for Russian hackers holding vast digital fortunes. Simultaneously, it provided a laundering service for UK gangs dealing in physical cash from illegal activities. The scale of the operation extended further, allegedly involving the notorious Irish Kinahan cartel, who are accused of leveraging the network to exchange cash for cryptocurrency. Shockingly, evidence suggests that even the Russian state utilized this clandestine system to funnel money to overseas spies and allegedly move funds from the state-controlled media outlet RT to journalists stationed in the UK.
Further investigations by the National Crime Agency (NCA) revealed that individuals sanctioned due to the war in Ukraine also exploited this network to obscure the origins of their wealth and acquire properties in Britain.
Bundles of cash seized during the Jersey investigation.
Bundles of seized cash highlight the scale of the money laundering operation uncovered by British authorities.
Key Figures Behind the Operation
At the helm of the Smart network was Ekaterina Zhdanova, a Russian national with a background in finance and connections within Moscow. Zhdanova, believed to be originally from Siberia, has been apprehended in France and was already under US sanctions. Leading the TGR network was Georgy Rossi, also of Russian banking background but whose current location is unknown. Both are suspected of amassing millions in illicit profits by charging approximately three percent commission on transactions that involved billions of pounds. These funds were frequently channeled through the Middle East, including the United Arab Emirates, with the network’s reach spanning over 30 countries.
Operation Destabilise: Unraveling the Network
Rob Jones, NCA director general of operations, emphasized the significance of “Operation Destabilise,” describing it as the agency’s most extensive money laundering probe in the past 10 years. To date, the operation has resulted in 84 arrests and the seizure of £20 million in the UK alone. The NCA estimates that the criminal network would need to launder around £700 million to recoup these losses, highlighting the substantial impact of the authorities’ actions.
Mr. Jones stated, “Operation Destabilise has exposed billion-dollar money laundering networks operating in a way previously unknown to international law enforcement or regulators.” He further elaborated on the unprecedented nature of the investigation, “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.”
Fawad Saiedi
Fawad Saiedi’s arrest in London initiated the exposure of a large-scale money laundering network.
Modus Operandi and Clientele
Zhdanova and Rossi’s networks functioned as an international exchange for criminals seeking to legitimize illicit funds or cryptocurrency. This system allowed criminals to exchange ‘dirty money’ for equivalent value funds, effectively obscuring the criminal origins of the wealth. Smart’s clientele allegedly included a Russian ransomware group implicated in extortion attempts totaling at least £27 million against 149 UK entities, including hospitals, schools, businesses, and local councils. The network facilitated drug dealers in the UK to trade cash for cryptocurrency to purchase drugs from South American cartels, while Russian cybercriminals could acquire foreign assets, such as real estate.
Nik Adams, the National Police Chiefs’ Council lead for economic crime, described the network as “hidden in plain sight, operating from within our communities, moving vast sums of money linked to the drugs trade and serious violence on our streets.”
Key Arrests and Network Components
The investigation gained momentum with the initial arrest of Fawad Saiedi in London in November 2021, who was found with over £250,000 in cash. Saiedi was subsequently imprisoned for money laundering offenses and believed to have laundered over £15 million under the direction of Zhdanova and Nikita Krasnov.
Further dismantling of the network uncovered UK-based cash couriers managed by Semen Kuksov and Andrii Dzektsa. Between July 2022 and September 2023, their operations facilitated the laundering of £12.3 million within a mere 74 days. Igor Logvinov, a courier connected to Kuksov’s network, was apprehended in Ireland and sentenced to three years in jail.
Semen Kuksov and Andrii Dzektsa
Semen Kuksov and Andrii Dzektsa managed cash courier operations as part of the extensive money laundering ring.
In Jersey, investigations in October 2021 led to the arrests of Muhiddin Umurzokov, Anvarjon Eshonkulov, and Batsukh Bataa, who attempted to launder £60,000. They were found to be involved in housing illegal immigrants in sub-let properties funded by proceeds from drug dealing and prostitution, and subsequently received jail sentences. Additional cases involved border stops in Kent, where Ukrainian nationals Taras Hirnyak and Andrii Trachuk were found with £1 million in cash concealed in washing powder boxes, and Ruslan Kaziuk was intercepted with packages of cash at Dover. Andrejs Jasins, a Latvian national, was apprehended with £400,000 hidden in his van near Birmingham.
International Collaboration and Sanctions
The NCA collaborated with law enforcement agencies in the US, Ireland, Jersey, and France to dismantle this extensive network, which had operations across 30 countries. The US authorities announced sanctions against individuals implicated in running the network, including Zhdanova’s associates Khadzi-Murat Dalgatovich Magomedov and Nikita Vladimirovich Krasnov, as well as Georgy Rossi and other key figures and associated businesses.
Conclusion: A Decisive Blow Against Financial Crime
The successful takedown of this multi-billion pound money laundering ring represents a significant victory for British authorities and their international partners in the fight against financial crime. Operation Destabilise has not only disrupted a major conduit for illicit funds but has also exposed the intricate connections between Russian elites, cybercriminals, and organized crime, sending a clear message that the UK is not a safe haven for money laundering activities. The ongoing investigations and sanctions are expected to have a lasting impact on similar criminal operations globally.
