The UK National Crime Agency (NCA) has exposed a billion-dollar money laundering network that collects criminal cash and converts it to crypto to evade sanctions and support the Russian war against Ukraine.
The NCA, along with its enforcement counterparts from countries including the US, France and Spain, have arrested 128 to date.
Dubbed “Operation Destabilise”, the crackdown resulted in the seizure of over £25 million ($33 million) in cash and cryptocurrency in Britain alone, the report noted.
“The networks disrupted through Destabilise operate at all levels of international money laundering, from collecting the street cash from drug deals, through to purchasing banks and enabling global sanctions breaches,” said Sal Melki, Deputy Director for Economic Crime at the NCA.
‘Cash to Crypto’ Swaps in Focus
The crypto-rich criminal ring has been collecting “dirty” money generated from the drugs trade and firearms supply to convert them into “clean” crypto.
These cryptocurrencies have become an integral part of global criminal networks, particularly in sanction evasion and organised crime.
“These networks have been identified as operating in at least 28 towns and cities across the UK, collecting criminal cash and converting it to crypto,” Sal Melki added.
Last December, the NCA and the US Treasury Department exposed two rings – TGR and Smart, as part of Operation Destabilise. The networks supposedly made use of the “cash-for-crypto” swap to help their Russian clients illegally bypass sanctions.
“This complex operation has exposed the corrupt tactics Russia used to avoid sanctions and fund its illegal war in Ukraine,” said Dan Jarvis, Security Minister. “We are working tirelessly to detect, disrupt, and prosecute anyone engaging in activity for a hostile foreign state. It will never be tolerated on our streets.”
Crypto in Organized Crime Leaves Global Enforcement Watchdogs in Trouble
Last week, the US Attorney for the District of Columbia, Jeanine Pirro, announced efforts to crack down on Chinese organized crime and crypto investment fraud.
In a global curb, a recent report uncovered $19 billion crypto scam network having links to senior Cambodian officials. Early this year, University of Texas professor, John Griffin, traced 4,000 crypto addresses, which were used to steal more than $75 billion from victims around the world between January 2020 and February 2024.
Besides, the UN issued a warning in April on the global crypto crime surge. A report from the UN Office on Drugs and Crime (UNODC) revealed that criminal syndicates are no longer exploiting existing crypto platforms; they’re now creating their own.
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