The UK's National Security Agency cracks down on a billion-dollar money laundering network: Drug money converted to Crypto Assets, surprisingly becoming the military treasury of Russia.

The UK's National Crime Agency (NCA) recently exposed a large-scale money laundering network active in the UK and globally. This network not only converts billions of dollars in criminal proceeds from cash into Crypto Assets but has also been found to acquire foreign banks to evade sanctions, directly providing financial support for Russian military operations and intelligence activities.

The investigation code-named “Operation Destabilise” reveals an astonishing direct link between street drug trafficking in the UK and state-level military procurement in Russia.

Operating Model: From Street-level Dirty Money to National-level Sanctions Evasion

NCA pointed out that this criminal network has established bases in at least 28 towns in the UK. Its grassroots operations rely on “cash couriers” who are responsible for collecting “dirty money” from drug trafficking, arms smuggling, and illegal immigration crimes, and charge a fee to convert it into “clean” Crypto Assets.

However, this is just the tip of the iceberg. The NCA's investigation found that these funds flowed to higher-level organized crime groups, even serving the interests of the Russian state.

To evade international financial sanctions, the network demonstrated a high level of complexity. The investigation identified a company named Altair Holding SA (linked to the network leader George Rossi), which acquired 75% of the shares of the Kyrgyz Keremet Bank on Christmas 2024. This bank was subsequently used to assist the Russian state-owned bank Promsvyazbank in conducting cross-border payments, thereby supporting Russia's military industrial base.

Key figures and their connections to Russian intelligence

The NCA's action primarily dismantled two core networks: Smart and TGR.

Smart Group: Led by Ekaterina Zhdanova (currently detained in France). Investigations show that Russian intelligence agencies attempted to use the group to fund spies across Europe, including a convicted Bulgarian spy ring led by Orlin Roussev.

TGR Group: Led by George Rossi and his deputy Elena Chirkinyan.

These two groups not only launder money for transnational cybercrime, drug, and arms smuggling organizations but also assist Russian clients in illegally circumventing financial restrictions to invest funds in the UK. In addition, the individuals involved include Russian/Moldovan oligarch Ilan Shor, who was involved in the $1 billion bank theft in Moldova and intervened in the country's elections.

A total of 128 people were arrested, and tens of millions in assets were seized.

The “Shaking Action” has achieved significant victories to date:

Total number of arrests: Since the operation began, a total of 128 people have been arrested.

Asset Seizure: Over £25 million (approximately $31.5 million) in cash and crypto assets have been seized in the UK alone.

International Cooperation: The NCA assisted international law enforcement partners in seizing an additional $24 million and €2.6 million.

Recent Actions: In the second phase of the operation, 45 suspects were arrested in less than 12 months, with cash seized exceeding £5.1 million.

Officials warn: Easy money can lead to prison disaster.

NCA Deputy Director of Economic Crime Sal Melki stated: “Today we revealed the scale of these networks and clarified the boundaries between community crime, complex organized crime, and state-sponsored activities. The drug money collected on the streets ultimately evolved into the acquisition of banks and assistance in violating global sanctions.”

To combat grassroots operations, the NCA has launched a campaign targeting Money Laundering couriers. In known hotspots, such as highway service stations, authorities have posted bilingual posters in English and Russian warning couriers: “Easy money leads to hard time.”

Melki warned: “These couriers take huge risks for a meager reward, facing years of imprisonment, while their bosses reap huge profits. For those money launderers who see this message, the choice is simple: either stop or be prepared to face our officers.”

UK Minister for Security Dan Jarvis emphasized: “This complex operation has exposed the corrupt means used by Russia to fund its illegal invasion of Ukraine. We will work tirelessly and will not tolerate hostile nations conducting such activities on our streets.”

This article reports that the UK National Security Agency has dismantled a multi-billion dollar money laundering network: drug money has been converted into Crypto Assets, which has surprisingly become a military treasury for Russia. It first appeared in ChainNews ABMedia.