A massive £1 billion criminal money-laundering network has been dismantled across 28 towns and cities in the United Kingdom, where organized crime groups allegedly converted profits from drug trafficking, weapons sales, and other illegal activities into cryptocurrency. According to Sky News, which cited intelligence from the National Crime Agency (NCA), a portion of these funds ultimately helped Russia evade international sanctions and support its wartime financing.
Major Criminal Network Linked to Russia Exposed
The investigation—part of the NCA’s long-running initiative known as Operation Destabilise—has resulted in 128 arrests and the seizure of more than £25 million in cash and digital assets. Authorities say the network was so deeply embedded that the criminals had even managed to acquire their own financial institution to facilitate illicit payments connected to Russian entities.
Couriers reportedly moved bags of illegal cash collected across the UK, which were then quickly funneled into cryptocurrency markets to disguise their origins. The NCA warned that these financial flows were not only strengthening UK-based criminal organizations but also contributing to global geopolitical instability, including Russia’s ongoing military operations.
Blockchain Data Helps Investigators Track Illicit Money
Despite assumptions that crypto transactions provide anonymity, UK authorities emphasized that blockchain transparency is playing a crucial role in exposing criminal financial routes.
Madeleine Kennedy, vice president at Chainalysis, noted that public blockchains make crypto “a poor vehicle for money laundering,” allowing investigators to trace funds tied to narcotics trafficking, cybercrime, and sanctions evasion with increasing precision.
One of the key suspects, Russian national Ekatarina Zhdanova, is accused of acting as a major financial facilitator for cybercriminal networks and high-profile Russian elites. She is currently detained in France and awaiting trial.
UK Government: Crypto Laundering Links to Russia Will Not Be Tolerated
UK security minister Dan Jarvis stated that the investigation highlights how Russia continues to rely on covert and crypto-enabled financial systems to bypass sanctions.