National Crime Agency disrupts million-billion Russian money laundering networks resulting in 84 arrests

Investigators have identified two Russian-speaking networks collaborating at the heart of the criminal enterprise, Smart and TGR. These two cryptocurrency networks based in Moscow, offered a solution as drug gangs across Europe were struggling to move their cash from street sales into the legitimate economy. 

How did Smart and TGR move illicit funds?

After being paid in cryptocurrency in exchange for cash, criminal gangs would use this virtual currency to reinvest in their illicit businesses without needing to move any physical money across country borders. This enabled the criminal groups to continually perpetuate their violent activity and cause more harm in the countries in which they operated. 

This global operation, based in Moscow has been taking dirty money from criminal gangs for a fee, and allowing them to exchange it for untraceable cryptocurrency, protecting drugs profits from detection. This network has also been used by Russian state to fund espionage from late 2022 to summer 2023. 

This streamlined the movement of cash generated from crime groups in the West, whilst simultaneously laundering cryptocurrency for cyber criminals and facilitating the evasion of sanctions for Russian oligarchs and elites. 

How did authorities disrupt the criminal activity of Smart and TGR? 

The United Kingdom was a key hub and the NCA worked closely with partners across law enforcement in this country to conduct a series of operations linked to ‘Operation Destabilise.’ 

Investigators have confirmed that the networks were hidden in plain sight, operating within our communities. These networks were moving large sums of money in the United Kingdom and beyond, linked to serious violence or to the drugs trade.

Smart is headed up by Ekaterina Zhdanova, who worked closely with Khadzi-Murat Magomedov and Nikita Krasnov to facilitate money laundering. The NCA has confirmed that TGR is run by George Rossi, and his second in command Elena Chirkinyan, and Andrejs Bradens (also known as Andrejs Carenoks). 

On 4 December 2024, the US Department of the Treasury’s Office of Foreign Asset Control announced sanctions against a series of individuals connected to these Russian-speaking networks. 

Rob Jones, Director General of Operations at the NCA has stated,

“For the first time, we have been able to map out a link between Russian elites, crypto-rich cyber criminals, and drugs gangs on the streets of the UK. The thread that tied them together – the combined force of Smart and TGR – was invisible until now. The NCA and partners have disrupted this criminal service at every level. We have identified and acted against the Russians pulling the strings at the very top, removing the air of legitimacy that enabled them to weave illicit funds into our economy.”

The NCA has confirmed that their operation in the United Kingdom did not go unnoticed by these criminal networks. In late 2022 and early 2023 members of the networks being investigated were believed to have reservations over operating in London. In late summer 2024, the Russian-speaking networks in the capital were charging high-commission rates and believed that it was difficult to work in the city.

When Mr Jones was asked whether these actions would be sufficient to close the criminal networks or if other key money launderers would simply rise within the network, he said that whilst they had sanctioned and arrested many individuals at the top, there will always be others that go on to participate and/or assume control. He stated “of course, there is always somebody in the wings [but] we really understand this system now. As people fill this void we’ll get after them”, making it easier for authorities to remove or capture those rising within the network. 

Partner Frances Murray and associate Emily Russell are in the criminal and financial crime team. They have a wealth of experience in financial crime, civil recovery, asset freezing and forfeiture.