A billion-pound money laundering ring operating in 28 UK towns and cities has been converting profits from drug trafficking, firearms sales and organized crime into cryptocurrency, with some of those funds ultimately helping Russia circumvent sanctions and fund its war effort, Sky News reported, citing the National Crime Agency (NCA).
The operation, uncovered through the NCA’s ‘Operation Destabilise’, has already led to 128 arrests and the seizure of more than £25m in cash and digital assets. Investigators say the network was so entrenched that it even acquired its own bank to streamline illicit payments linked to Russian interests.
Couriers reportedly picked up bags of “dirty” cash before it was rushed to crypto markets. The NCA warned that these flows are not only fueling criminal activity in the UK, but are also directly connected to “geopolitical events causing suffering around the world”.
Blockchain Transparency
Despite the common perception that digital assets offer anonymity, the NCA emphasized that blockchain transparency is proving instrumental in mapping these criminal channels.
Chainalysis vice president Madeleine Kennedy told Sky News that public blockchains provide “a poor vehicle for money laundering”, allowing law enforcement to track funds linked to drug trafficking, sanctions evasion and cybercrime.
An alleged ringleader, Russian national Ekatarina Zhdanova, described by investigators as a key financial conduit for cybercriminals and Russian elites, is currently detained in France awaiting trial.
UK Security Minister Dan Jarvis said the operation exposes how Russia relies on covert financial channels, including cryptocurrency-based money laundering, to evade sanctions.
“It will never be tolerated on our streets,” Jarvis said.
