Billion-pound money laundering network in the UK uses crypto to help Russia evade sanctions

A multi-billion-pound money laundering network operating across 28 cities and towns in the UK has moved profits from drug trafficking, weapons, and organized crime into crypto, with some of the funds allegedly used to help Russia evade sanctions and finance the war, according to the NCA.

The UK National Crime Agency’s (NCA) operation, called Operation Destabilise, has led to 128 arrests and the seizure of over £25 million in cash and digital assets. The network is believed to be so sophisticated that it even owns its own bank to coordinate illegal payments related to Russian interests.

Cash collection agents would usually gather bags of “dirty” money before quickly moving it into the crypto market. The NCA warns that this money flow not only fuels crime in the UK but is also directly linked to “geopolitical events causing suffering around the world.”

While many people think crypto is anonymous, the NCA emphasizes that the transparency of blockchain is helping investigators map out criminal networks.

Madeleine Kennedy, Vice President at Chainalysis, told Sky News that the public blockchain is a “very inefficient vehicle” for money laundering, allowing law enforcement to trace funds linked to drug trafficking, sanctions evasion, and cybercrime.

A suspected ringleader, Russian national Ekatarina Zhdanova, described as a “key financial enabler for cybercriminals and the Russian elite,” is currently being held in France awaiting trial.

UK Security Minister Dan Jarvis said the operation shows Russia relies on secret financial channels, including crypto money laundering, to evade sanctions. “This will never be tolerated on our streets,” he said.