The UK has uncovered an international network that was used to launder cryptocurrencies and finance criminal groups, including the activities of Russian spies. The network was active in more than 30 countries from the end of 2022 to the summer of 2023, in particular, criminals used it to finance extortion groups, as well as to conduct "Russian espionage operations." The case highlights the growing interaction between organized crime and hostile states as economic sanctions force countries such as Russia to seek new ways to circumvent international restrictions.
The network worked through couriers who collected cash in certain countries, such as Great Britain, and exchanged it for cryptocurrency, mostly Tether. The money was then laundered through companies, and its equivalent became available in other countries. This allowed criminals, particularly cocaine lords and Russian cybercriminals, to bypass sanctions and access cash through cryptocurrency.
The criminals operated from London, Moscow and Dubai. As part of the investigation, 84 people were arrested and £20 million in cash and cryptocurrency was seized. In addition, five individuals and several companies were included in the US sanctions list. Among those involved in this scheme is the Russian media group RT, which used cryptocurrency to finance its operations in the UK.
According to the UK's National Crime Agency (NCA), more than £100 billion is laundered in or through the country every year, with up to £5 billion being laundered through cryptocurrency. The increase in the use of cryptocurrencies for these purposes has occurred in particular due to the COVID-19 pandemic, when travel restrictions have made it difficult to move cash.
