Highlights. A UK-led investigation has uncovered a cryptocurrency laundering network used by Russian spies and European drug traffickers to circumvent sanctions using cryptocurrencies.
The network, which included Smart and TGR, operated in more than 30 countries and facilitated the exchange of cash for #cryptocurrencies .
According to the Financial Times, a large-scale operation carried out by the UK authorities destroyed a #cryptocurrency laundering network that facilitated Russian espionage and European drug trafficking, as well as allowed sanctioned individuals to circumvent financial regulations using cryptocurrencies.
The investigation, dubbed Operation Destabilize, was led by the UK's National Crime Agency (NCA) and targeted two companies, Smart and TGR, that acted as financial conduits for criminals and sanctioned individuals around the world.
The cryptocurrency laundering network operated in more than 30 countries and provided services to such notorious groups as the Kinahan Cartel, Irish cocaine traffickers involved in violent crime, and Russian agents linked to cyberattacks. The case took place between late 2022 and mid-2023 and demonstrated that criminal organizations and hostile states are increasingly turning to cryptocurrencies as they find it harder to access the traditional banking system.
This case highlights the growing involvement of cryptocurrencies in money laundering, which exceeds £100 billion a year in the UK, with cryptocurrencies accounting for up to £5 billion of that amount. The increased use of cryptocurrencies has contributed to the problem, especially during the COVID-19 pandemic, when global travel restrictions were imposed and moving large amounts of cash was extremely difficult.
In addition to acting against cryptocurrency laundering networks, it also highlights the greater confidence in the growth of pegs, which have become popular with criminals due to their stability.
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