An international investigation has dismantled a Russian money laundering network with links to organized crime and sanctioned powerful figures.
Led by the UK’s National Crime Agency (NCA), the operation involved US and European authorities. As a result, 84 people were arrested and over 20 million pounds (about 25.4 million USD) in cash and cryptocurrency confiscated.
Authorities Disable Money Laundering Network
Two Moscow-based exchanges, Smart Group and TGR Group, are key elements in the cryptocurrency money laundering network. These platforms converted illicit cash into untraceable digital assets, facilitating crimes such as drug trafficking and espionage financing. Authorities revealed that even state-owned operations use these exchanges to circumvent international sanctions.
“For the first time, we can map the links between Russian power figures, wealthy tech criminals and drug gangs on Britain’s streets. The thread that binds them – the union of Smart and TGR – has been invisible until now,” said Rob Jones, Director General of Operations, National Crime Agency.
Ekaterina Zhdanova, head of Smart Group, was arrested in France, while George Rossi of TGR Group is still on the run. Both were sanctioned by the US Treasury Department for facilitating sanctions circumvention and money laundering. The network operates in over 30 countries, exploiting the anonymity of cryptocurrency to hide illicit flows.
Another branch of the investigation exposed that they also operated the same cash transfer network run by Semen Kuksov and Andrii Dzektsa. Their money transfers laundered over 12 million pounds (about 15.26 million USD) in the UK in just two and a half months and launched similar operations across Europe.
Kuksov, involved in a high-circulation cryptocurrency wallet, and Dzektsa were sentenced to five and a half years, and five years in prison, respectively. A money courier, Igor Logvinov, was arrested in Ireland and sentenced to three years in prison.
The Rise of Russian Networks
This hit has put significant financial pressure on these networks ever since. The Russian-speaking money laundering group operating in London reportedly charged high commissions in mid-2024, reflecting the increased difficulty of operating in the city.
“The networks disrupted by Operation Neutralize have been hiding in plain sight, operating from within our communities, moving large amounts of money linked to drug trafficking and serious violence on our streets,” said Nik Adams, Assistant Commissioner of the City of London Police and NPCC lead on economic crime.
However, this case is not isolated. In September, the US Department of Justice accused Russian citizens Sergey Ivanov and Timur Shakhmametov for laundering over 1 billion USD through illegal cryptocurrency platforms. These exchanges have facilitated cybercrime and allowed sanctioned entities to bypass restrictions. On February 4, the US Treasury Department also sanctions TGR Group for supporting Russian power figures.
The Financial Action Task Force (FATF) calls for stricter supervision of virtual assets. The updated recommendations call for regulation of virtual asset providers to effectively fight financial crime. Meanwhile, the success of the NCA’s campaign highlights growing international cooperation against cryptocurrency money laundering.
