A billion-pound money laundering network operating across 28 UK cities converted revenues from drug trafficking, gun sales and organized crime into cryptocurrency, with some of these 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 long-running ‘Operation Destabilize’, has already led to 128 arrests and the seizure of more than £25 million in cash and digital assets. Investigators say the network was so well established that it even acquired its own bank to streamline illicit payments linked to Russian interests.
Couriers reportedly collected bags of “dirty” money before they were quickly transferred to crypto markets. The NCA warned that these flows not only fuel UK criminal activity, but are also directly linked to “geopolitical events causing suffering around the world”.
Blockchain transparency
Despite the widespread perception that digital assets offer anonymity, the NCA highlighted that blockchain transparency proves essential in mapping these criminal pipelines.
Chainalysis vice president Madeleine Kennedy told Sky News that public blockchains are “a poor vehicle for money laundering”, allowing law enforcement to trace funds linked to drug trafficking, sanctions evasion and cybercrime.
One of the alleged ringleaders, Russian Ekatarina Zhdanova, described by investigators as a key financial intermediary for cybercriminals and Russian elites, is currently detained in France awaiting trial.
British Security Minister Dan Jarvis said the operation revealed how Russia relied on secret financial channels, including crypto-based laundering, to evade sanctions.
“This will never be tolerated on our streets,” Jarvis said.
