British authorities have exposed a massive money laundering operation that helped criminal gangs convert billions in dirty cash into cryptocurrency, while also enabling Russian espionage activities.
The National Crime Agency (NCA) revealed that the Russian-speaking network emerged during the COVID-19 pandemic lockdowns when drug gangs were struggling to move their illicit cash. The operation, described as the biggest money laundering bust in a decade, spans 30 countries and has led to 84 arrests, including 71 in the UK.
At the center of the scheme were two Moscow-based cryptocurrency exchanges - Smart and TGR - which provided an instant solution for converting street drug money into untraceable digital assets. The networks charged commission fees for handling the dirty cash through couriers who would funnel it through legitimate-looking businesses or transport it to Dubai.
The investigation began in 2021 when police intercepted courier Fawad Saiedi carrying £250,000 in cash. This led authorities to Ekaterina Zhdanova, who heads the Smart crypto exchange in Moscow. Another key figure, Semen Kuksov, son of a Russian oil executive, was found running a UK courier network that processed over £12 million in drug money in just 10 weeks.
The NCA discovered the operation was not just serving organized crime - it was also being used by the Russian state to fund espionage in 2022 and help the banned Russia Today media platform move money into Britain in 2023.
The US Treasury has now sanctioned the key figures behind the scheme, including Zhdanova and TGR's leader George Rossi. British authorities have seized £20 million in cash so far, linked to an estimated £700 million in drug sales.
"We have identified and acted against the Russians pulling the strings at the very top," said Rob Jones, NCA operations director, adding that they've made it "extremely difficult" for the key players to continue operating.
The investigation exposed deep connections between Russian elites, cyber criminals, and UK drug gangs that had previously remained hidden from view. UK Security Minister Dan Jarvis called it a breakthrough in exposing "Russian kleptocrats, drug gangs and cyber criminals" who depended on these illicit money flows.