November 6, 2023 at 09:00AM
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against Ekaterina Zhdanova, a Russian national involved in money laundering for ransomware affiliates and Russian elites. Zhdanova used various methods, including virtual currency exchange transfers, fraudulent accounts and purchases, and connections to international money launderers. She also utilized traditional businesses to maintain access to the international financial system. Zhdanova assisted a Ryuk ransomware affiliate in laundering over $2.3 million in 2021. Her involvement extended to helping Russian oligarchs transfer their wealth to Western Europe and other countries. The sanctions block Zhdanova’s US property and interests and prohibit transactions with her.
Key Takeaways from Meeting Notes:
1. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has implemented sanctions against Ekaterina Zhdanova, a Russian national involved in money laundering activities for ransomware affiliates and Russian elites.
2. Zhdanova employs various methods, including virtual currency exchange transfers, fraudulent accounts and purchases, and connections to international money launderers, to assist her clients in moving funds.
3. She also utilizes traditional businesses, such as a luxury watch company, to maintain access to the international financial system.
4. Zhdanova is accused of helping a Ryuk ransomware affiliate to launder over $2.3 million in suspected victim payments in 2021.
5. Ryuk, believed to be operated by Russian threat actors, is a file-encrypting ransomware that emerged in 2018 but has since been replaced with Conti.
6. Ryuk attacks affected thousands of victims globally, with estimates suggesting it generated more than $150 million in early 2021.
7. Denis Mihaqlovic Dubnikov, another Russian national, was sentenced in the US for money laundering on behalf of the Ryuk ransomware group between 2018 and August 2021.
8. Zhdanova facilitated the transfer of wealth for Russian oligarchs to Western Europe and other countries, providing access to financial markets that would otherwise be prohibited.
9. These illicit financial activities help individuals and entities evade US and international sanctions imposed on Russia.
10. Zhdanova allegedly assisted a Russian client in transferring over $2.3 million through fraudulent investment accounts and real estate purchases, and transferred over $100 million to the United Arab Emirates for a Russian oligarch.
11. She provided her Russian clients with United Arab Emirates tax residency, identification cards, and bank accounts.
12. Sanctions against Zhdanova result in the blocking of her property and interests in the US, and US entities and individuals are prohibited from engaging in transactions with her.