The international sting operation against a Russian millionaire’s multibillion-pound money laundering network has uncovered a complex system used by Russian-speaking hackers to convert cryptocurrency into cash and assets. The network, known as Smart, was run by Ekaterina Zhdanova, a Russian national with a background in the financial industry and connections in Moscow. Street gangs, drug dealers in Britain, and even the Irish cartel Kinahans were alleged to have used the system to launder illicit funds. The Russian state, as well as citizens sanctioned amid the war in Ukraine, also reportedly utilized the network to conceal the origins of their cash and purchase property in the UK.
Zhdanova and her associate Georgy Rossi, who came from a Russian banking background before relocating to Europe, are believed to have made millions of pounds from money laundering through Smart. The pair charged criminal clients around three per cent for transactions involving billions of pounds. The scheme was first discovered with the arrest of Fawad Saiedi in London in 2021, who was found with a significant amount of cash and later jailed for money laundering. Cash couriers in the UK, including individuals such as Semen Kuksov and Andrii Dzektsa, were also exposed as part of the network, overseeing the laundering of millions of pounds.
The network operated on an international scale, with a reach across 30 countries, and involved individuals from Russia, the UK, Ireland, Jersey, and France. The NCA worked with law enforcement agencies in these countries to dismantle the operation. Russian cybercriminals, drug dealers, and ransomware groups were among those alleged to have used the system to hide the origins of their money, with the goal of making profits from illicit activities. The network facilitated exchanges of dirty money or cryptocurrency for legitimate funds, allowing criminals to obscure the source of their wealth.
Ukrainian nationals and other money smugglers were stopped at borders in England, Ireland, and Jersey attempting to transport large sums of cash associated with the money laundering network. Global sanctions have been imposed on several individuals and businesses involved in the network by the US authorities. The network operated discreetly, weaving illicit funds into the economy with the combined force of Smart and TGR. The collaboration between Russian elites, cybercriminals, drug gangs, and the network’s facilitators exemplified the complexity and cross-border nature of modern money laundering operations.
The network’s disruption, arrests, and sanctions imposed on key figures have sent a strong message that international cooperation is essential in combating money laundering networks. The NCA and its partners have identified the top players in the operation and taken steps to disrupt their operations. By exposing the ties between Russian elites, cybercriminals, and drug gangs using the network, law enforcement agencies aim to prevent the flow of illicit funds into legitimate markets. The network’s downfall serves as a warning to criminals seeking to exploit financial systems and highlights the ongoing challenges in combating sophisticated money laundering operations on a global scale.
