A multibillion-pound money-laundering network operating across 28 towns and cities in the UK has converted proceeds from drug trafficking, arms sales and organized crime into cryptocurrency, with some of those funds ultimately helping Russia circumvent sanctions and bankroll its war effort, Sky News reported, citing the National Crime Agency (NCA).
The operation, uncovered through the NCA’s long-running “Operation Destabilise”, 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 entrenched that it even bought its own bank to streamline illicit payments linked to Russian interests.
Couriers reportedly collected bags of “dirty” cash before quickly moving it to crypto markets. The NCA warned that these streams not only promote British criminal activity, but also link directly to “geopolitical events causing suffering around the world.”
Blockchain transparency
Despite the common perception that digital assets offer anonymity, the NCA emphasized that blockchain transparency is proving instrumental in mapping these criminal pipelines.
Chainalysis’ vice president, Madeleine Kennedy, told Sky News that public blockchains provide “a poor means of money laundering”, enabling law enforcement to track funds linked to drug trafficking, sanctions evasion and cybercrime.
An alleged ringleader, Russian national Ekatarina Zhdanova, described by investigators as a key financial conduit for cybercriminals and Russian elites, is currently detained in France awaiting trial.
British Security Secretary Dan Jarvis said the operation reveals how Russia relies on secret financial channels, including crypto-based money laundering, to avoid sanctions.
“It will never be tolerated on our streets,” Jarvis said.
