UK disrupts Russian money laundering networks used by ransomware

UK disrupts Russian money laundering networks used by ransomware

December 4, 2024 at 03:25PM

The UK’s National Crime Agency disrupted two Russian money laundering networks, arresting 84 suspects in “Operation Destabilise.” These networks, linked to ransomware gangs, laundered millions for cybercriminals. The operation unveiled connections among Russian elites, cybercriminals, and UK drug gangs, highlighting significant international collaboration in tackling such financial crimes.

### Meeting Takeaways from Operation Destabilise

1. **Overview of Operation**:
– A U.K.-led operation, “Operation Destabilise,” has successfully disrupted two Russian money laundering networks linked to global criminal activities, including ransomware operations.

2. **Arrests Made**:
– 84 Russian-speaking suspects were arrested, associated with two criminal organizations: Smart, led by George Rossi, and TGR, controlled by Ekaterina Zhdanova.

3. **Financial Implications**:
– TGR was responsible for laundering over $2.3 million in suspected ransom payments from the Ryuk ransomware group in 2021.
– The NCA estimates TGR extorted at least £27 million from 149 UK victims, affecting various sectors, including public institutions.

4. **Ransomware Context**:
– Ryuk operated from 2018 to 2020 before transitioning to Conti ransomware, which also later fragmented into smaller units.

5. **Collaborative Efforts**:
– The NCA worked with multiple international agencies, including the U.S. Treasury’s OFAC, the FBI, and law enforcement partners in France and Ireland.

6. **Criminal Network Insights**:
– The operation revealed connections between Russian elites, cryptocurrency-linked cyber criminals, and drug gangs in the UK, a previously unseen linkage.

7. **Sanctions**:
– Zhdanova was sanctioned by OFAC in November 2023 for her role in laundering cryptocurrency tied to ransomware actors.
– Other suspects, including Elena Chirkinyan and Andrejs Bradens, were also sanctioned by OFAC.

8. **Sanction Evasion**:
– Smart and TGR assisted Russian elites in bypassing financial sanctions to invest in Western markets.
– Chirkinyan was involved in concealing fund transfers believed to support sanctioned media entities in the UK.

9. **Cryptocurrency Ties**:
– The laundering networks have been linked to cryptocurrency addresses associated with Garantex, a U.S. and U.K.-sanctioned exchange.
– Garantex is linked to illegal transactions on the Hydra Market dark web platform and funding components for Russian weaponry in Ukraine.

10. **Statements from Authorities**:
– Rob Jones, NCA’s Director General of Operations, highlighted the operation’s role in revealing extensive money laundering networks and their operations.

This summary encapsulates the major points and findings from the meeting regarding Operation Destabilise and its implications on crime and financial operations.

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