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A large-scale criminal network in the United Kingdom has been converting drug money, human trafficking proceeds, and other illegal income into cryptocurrency for years, according to Sky News. The UK’s National Crime Agency (NCA) reports that a portion of these funds was funneled to Russian interests under sanctions. Investigators describe a professionally run system active in nearly thirty British cities, which rapidly pushed millions in cash into the crypto market.
Money Flows via Crypto and Own Banking Structures #
The NCA discovered that couriers collected large amounts of cash, often in sports bags and suitcases, which were then promptly converted into digital currencies. This crypto was subsequently used to mask payments to Russia and to finance intermediaries involved in military activities. The infrastructure was so deeply entrenched that the network even acquired its own bank to facilitate the illegal transactions more smoothly.
Under Operation Destabilise, 128 suspects have been arrested so far, and more than £25 million in cash and digital assets have been confiscated. The NCA stressed that these financial flows not only strengthen the UK’s criminal underworld but are also connected to “geopolitical events causing global harm.”
One of the key figures in the network is the Russian national Ekaterina Zhdanova. According to investigators, she acted as a financial conduit for cybercriminals and wealthy Russian parties subject to international sanctions. She is currently in custody in France awaiting trial.
Public Blockchains Make Money Laundering Harder #
While often perceived as an anonymous haven, British authorities emphasize that the transparency of blockchains actually helps in dismantling such schemes. By analyzing transactions, law enforcement was able to trace the money flows, link them to the drug trade, and connect them to Russian entities attempting to evade sanctions.
Analysis firm Chainalysis told Sky News that public blockchains make money laundering more difficult, not easier. “Public blockchains are a poor tool for money laundering,” said Vice President Madeleine Kennedy.
Russia Dependent on Hidden Money Flows #
UK Security Minister Dan Jarvis stated that Russia remains dependent on hidden financial routes and emphasized that such activities are being cracked down on hard. “It will never be tolerated on our streets,” said Jarvis.
The investigation is ongoing, and the NCA warns that further arrests and seizures may follow.