A multibillion-pound money laundering network, linking Russian cyber criminals, UK drug dealers, and sanctioned oligarchs, has been dismantled in a sweeping international operation led by the National Crime Agency (NCA). The operation, known as Operation Destabilise, is the largest money-laundering investigation by the NCA in a decade.
The criminal network utilized cryptocurrency to disguise the origin of illicit funds, allowing criminals to convert “dirty money” into legitimate assets. Two primary cryptocurrency networks—Smart and TGR—facilitated this exchange, operating between over 30 countries.
The operation targeted Russian-speaking hackers and UK-based street gangs, many of whom were connected to sanctioned Russian oligarchs and involved in the illicit transfer of money for real estate investments in the UK. Additionally, the Irish Kinahan cartel was implicated, using the network to convert cryptocurrency into cash.
One of the key figures behind the Smart network, Ekaterina Zhdanova, a Russian national with strong financial ties in Moscow, was arrested in France. Zhdanova, who was sanctioned by the US in 2023, and her associate Georgy Rossi, still at large, are believed to have made millions from the network, charging up to three percent for their transactions. The illicit operation was routed through the Middle East, including the United Arab Emirates.
Rob Jones, Director General of Operations at the NCA, described the operation as “groundbreaking,” highlighting how Russian elites, cybercriminals, and UK drug gangs were linked by an invisible money-laundering service. To date, the investigation has led to 84 arrests and the seizure of £20 million in assets within the UK. The NCA estimates the network would need to launder £700 million to recover that amount.
The cryptocurrency network allowed UK drug dealers to exchange physical cash for digital currency, which was then used to purchase drugs from South American cartels. In parallel, Russian cybercriminals utilized the system to convert cryptocurrency into physical assets, such as real estate. Zhdanova’s network also allegedly assisted a Russian ransomware group, which attempted to extort at least £27 million from UK victims, including hospitals, schools, and businesses.
Nik Adams, lead for economic crime at the National Police Chiefs’ Council, remarked that the network was “hidden in plain sight” and involved vast sums linked to the UK drug trade and violent crime.
The NCA’s investigation began in November 2021 after the arrest of Fawad Saiedi in London, who was found with over £250,000 in cash. Saiedi was later jailed for laundering over £15 million. Further arrests related to the network included Semen Kuksov and Andrii Dzektsa, who between July 2022 and September 2023, oversaw the laundering of £12.3 million in just 74 days. In Ireland, Igor Logvinov, associated with Kuksov’s network, was sentenced to three years in prison.
Other parts of the operation saw individuals smuggling large sums of money across borders, including Ukrainian nationals who were stopped at the Channel Tunnel and Dover with over £1 million in cash.
The NCA worked in collaboration with law enforcement agencies in the US, France, Ireland, and Jersey to dismantle the network. Sanctions have also been announced against key associates of Zhdanova and other important figures involved, including Khadzi-Murat Dalgatovich Magomedov, Nikita Vladimirovich Krasnov, Rossi, and Andrejs Bradens.