Cyber Crime
Crypto Crackdown : Authorities Dismantle Russian Money-Laundering Network Using Tether
Authorities in the U.S. and U.K. have dismantled a sophisticated money-laundering network allegedly exploiting cryptocurrency to help Russian elites bypass international sanctions. The operation relied heavily on tether, a dollar-backed stablecoin favored for its discreet transactions, to move large sums of money across borders.
The network, spearheaded by Russian businesswoman Ekaterina Zhdanova and her organization, Smart Group, specialized in converting bulk cash deliveries into cryptocurrency. Members used tether to obscure the origins of funds, facilitating illicit purchases and investments, including high-value property acquisitions in the U.K.
The network employed digital wallets to transfer millions in tether, making it difficult for authorities to trace the money flow.
The National Crime Agency (NCA) revealed a complex system involving street-level cash couriers across Britain. Cash handovers were quickly followed by equivalent crypto transfers, enabling seamless financial operations without moving physical currency. These funds were reportedly used to finance Russian espionage and international criminal syndicates, including an Irish drug-trafficking cartel.
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Authorities uncovered ties between Zhdanova’s network and high-profile Russian oligarchs, suggesting its involvement in laundering proceeds from organized crime. The network’s activities extended to supporting other criminal enterprises, such as arms and drug trafficking, through crypto exchanges.
In France, Zhdanova remains in custody under a separate investigation, marking a significant blow to the network. Collaborative efforts between the U.S. and U.K. led to dozens of arrests and further scrutiny of cryptocurrency’s role in global financial crime.
