A police operation, coordinated by the UK's National Crime Agency (NCA), has disrupted two Russian money laundering networks used by criminals around the world (and ransomware gangs).
The international police operation was called “Operation Destabilise” and led to the arrest of 84 Russian-speaking suspects linked to the criminal organizations Smart (led by Ukrainian George Rossi) and TGR (led by Russian Ekaterina Zhdanova).
“The networks support Russian cybercriminals to launder their illicit profits . In 2021, Zhdanova laundered more than $2.3 million in ransoms, paid in crypto, from victims of the Ryuk ransomware group,” said today.
See also: Bitcoin Fog founder jailed for money laundering
The NCA estimates that the Ryuk group was responsible for the theft (through extortion) of at least £27 million from 149 victims in the UK. The victims include hospitals, schools, businesses and local authorities.
Ryuk is a former ransomware-as-a-service (RaaS) operation that was active between 2018 and 2020, when the Wizard Spider switched to the popular Conti ransomware. The Conti operation also ceased operations two years later, in May 2022, when it was split into several smaller units.
As part of the new Operation Destabilise, UK law enforcement worked with multiple international partners , including the US Treasury Department's Office of Foreign Assets Control (OFAC), the FBI, the Drug Enforcement Administration, the French Directorate Centrale de la Police Judiciaire and Ireland's national police and security service, An Garda Síochána (AGS).
To disrupt the activities of Russian money laundering networks, the NCA also worked closely with the authorities of the United Arab Emirates (UAE).
“For the first time, we have been able to map a connection between Russian elites, crypto-rich cybercriminals and drug gangs on the streets of the UK. This connection has been invisible until now,” said Rob Jones, NCA’s Chief Operating Officer.
See also: US: Money laundering charges against Russians
OFAC sanctioned Zhdanova (the head of the TGR organization) in November 2023 for laundering millions of cryptocurrencies. With the new investigation, other suspects connected to the two money laundering networks have emerged. Two of them are Elena Chirkinyan and Andrejs Bradens, who were sanctioned, along with Rossi (the head of the Smart network).
It is said that the two networks, Smart and TGR, also helped Russian elites and certain individuals and entities bypass sanctions and other financial restrictions to invest in Western economies.
Chirkinyan, who belonged to the TGR organization, also helped conceal transfers of funds from Russia, possibly to support a Russian-language media organization in the United Kingdom. These funds are believed to have come from Russia Today (RT), which has been sanctioned.
Additionally, the cryptocurrency addresses of the two networks have been linked to transactions with Garantex, a cryptocurrency exchange that was sanctioned by the US and the UK two years ago.
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See also: USA: Sanctions on crypto exchange services Cryptex and PM2BTC for money laundering
Money laundering
Preventing this malicious activity requires a multi-layered approach. First, it is important to have a stable and effective legal framework to address the issue. This includes establishing laws and regulations that prohibit money laundering and provide for severe penalties for violators
Additionally, banks and other financial institutions must have control and monitoring systems in place to identify and report suspicious transactions. This may include training staff and implementing technologies that can help detect suspicious activity.
International cooperation is also crucial to preventing money laundering. Countries must work together to share information and enforce their laws internationally. International organizations can also play an important role in promoting best practices and providing technical assistance.
Finally, public information and awareness is another important factor. Citizens need to be aware of techniques and their impact on society, so that they can recognize and report any suspicious behavior.
Source: www.bleepingcomputer.com
