Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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The UK National Crime Agency has exposed how Russian intelligence services channeled funds to a convicted espionage network through a cash-to-crypto laundering operation run by businesswoman Ekaterina Zhdanova, who attempted to bankroll former Wirecard executive Jan Marsalek’s spy ring.
The revelation connects billion-dollar money laundering networks to geopolitics, organized crime, and state-sponsored activity across at least 28 British towns and cities.
According to Bloomberg, nearly a year after dismantling two Russian laundromats that moved billions globally, the NCA revealed Zhdanova’s “Smart” network was used by individuals working with Russian intelligence services to fund six Bulgarian nationals now serving up to 10 years for espionage.
Marsalek, who worked for Russian intelligence and disappeared during Wirecard’s 2020 collapse, spent as much as £45,000 ($58,768) on operations that included spying on journalists and politicians while plotting assassinations before the network’s dismantling.
Billion-Dollar Networks Converting Crime Cash to Clean Crypto
Operation Destabilise led to 128 arrests worldwide and the seizure of over £25 million ($33 million) in cash and cryptocurrency in Britain alone.
The Smart and TGR networks operated as illicit clearing houses, collecting cash in one country and making equivalent value available in another, using Tether’s stablecoin to provide massive liquidity.
The crypto-rich criminal rings collected dirty money from drugs trade and firearms supply to convert into clean digital assets.
Clients ranged from sanctioned broadcaster Russia Today in the UK to the Kinahan family crime syndicate, with the networks supporting almost any crime through seamless cross-border value transfers.
“Through this laundering scheme, we can now draw a line between the money involved in the local drugs trade to global organized crime, geopolitics, and state sponsored activity,” said Sal Melki, the NCA’s deputy director for economic crime.
The networks operate at all levels of international money laundering, from collecting street cash from drug deals to purchasing banks and enabling breaches of global sanctions.
Canadian Teen Spy Case Exposes FSB’s Bitcoin Payment Structure
Beyond the UK operation, Russian intelligence has increasingly relied on Bitcoin to fund covert operations across Europe.
Back in June, a Reuters investigation with blockchain forensics firms Global Ledger and Recoveris revealed how the Federal Security Service used crypto to finance espionage, including recruiting Canadian teenager Laken Pavan after detaining him in Donetsk.
Pavan received just over $500 in Bitcoin while in Copenhagen before fleeing to Poland, where he turned himself in and received a 20-month sentence.
Blockchain analysts traced the payment through intermediary wallets to a larger wallet created in June 2022 that has since processed more than $600 million in Bitcoin, including transactions routed through sanctioned Russian exchange Garantex.
Global Ledger’s analysis found transactions from FSB-linked wallets followed structured laundering patterns, operating exclusively during Moscow business hours.
Recoveris identified a network of 161 Bitcoin addresses tied to the FSB, with hundreds of transactions occurring within 6 a.m. to 6 p.m. Moscow time.
Canadian regulators also recently discovered that unregistered crypto exchange companies are facilitating large cash-for-crypto transactions without requiring identity verification, delivering up to $1 million in untraceable cash.
Crypto Laundering Growing Networks
Earlier this month, federal prosecutors charged Firas Isa, founder of Chicago-based Crypto Dispensers, with money-laundering conspiracy for allegedly moving at least $10 million in fraud and drug proceeds through crypto kiosks nationwide between 2018 and 2025.
The indictment arrives as FBI data shows nearly 11,000 crypto ATM-related complaints in 2024, totaling more than $246 million.
Similarly, the Treasury’s Office of Foreign Assets Control has recently sanctioned eight individuals and two North Korean entities for laundering proceeds from cyber theft and for an IT worker scheme, citing more than $3 billion stolen over three years, primarily in crypto.
The designations block property within US jurisdiction and prohibit transactions involving designated parties, imposing compliance obligations on crypto businesses to halt flows that touch listed names or related addresses.
Zhdanova was hit with US sanctions in 2023 after authorities said she moved more than $100 million for one oligarch to the United Arab Emirates.
She has spent over a year in pre-trial detention in France, accused of crimes in a separate case, while the NCA has arrested 45 suspected money launderers in under 12 months and seized £5.1 million in cash.
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