In a global crackdown, authorities dismantled two major Russian money-laundering networks—Smart Group and TGR Group—responsible for laundering billions for organized crime, ransomware operators, and Russian elites evading sanctions.
The operation, Operation Destabilise, was led by the UK’s National Crime Agency (NCA) with support from the FBI, DEA, and law enforcement agencies in France, Ireland, and other nations.
The operation identified Ekaterina Zhdanova, a Russian socialite and entrepreneur, as the head of Smart Group. Zhdanova is accused of laundering illicit funds through cryptocurrency for criminal syndicates and Russian elites. George Rossi, leader of TGR Group, remains at large and is also implicated.
The networks used cryptocurrency, including Tether, to convert ransomware profits and illicit funds into cash. Western crime groups, like the Irish Kinahan cartel, exchanged cryptocurrency for drugs and weapons, while Russian operatives used cash for espionage and covert activities.
Operation Destabilise resulted in 84 arrests and the seizure of over £20 million in cash and cryptocurrency. Investigators traced illicit transactions involving Russian cybercriminals, Kremlin-linked entities like Russia Today, and crime syndicates in South America and Europe.
The laundering operation spanned 55 U.K. locations and was described by the NCA as unprecedented in scale. The process involved three phases: placing funds into financial systems, layering to obscure their origin, and integrating the funds for use. Authorities noted that the decentralized nature of cryptocurrency made it ideal for evading sanctions and scrutiny.
Ben Cowdock of Transparency International emphasized that as Russia becomes increasingly isolated from traditional banking systems, it relies more on cryptocurrency to move funds internationally. Both Smart Group and TGR Group used Garantex, a cryptocurrency exchange sanctioned by the U.S. for ties to cybercrime, and brokers in the UAE, a known crypto hub.
NCA Director Rob Jones called the operation one of the largest money-laundering investigations in recent years, citing the success of international collaboration and advanced tracking methods. Despite the success, Jones warned that the threat remains, saying, “as people fill this void, we’ll get after them.”
