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Ruholamin Haqshanas
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Ruholamin Haqshanas
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U.S. and U.K. authorities have taken action against a money-laundering network accused of helping Russian elites bypass international sanctions using cryptocurrency, particularly the stablecoin tether.
Central to the network is Ekaterina Zhdanova, a prominent Russian businesswoman known for her involvement in Tether’s rise within the financial underworld, according to a report by the Wall Street Journal.
Per the report, Zhdanova led an organization called Smart Group, which allegedly facilitated the conversion of bulk cash deliveries into cryptocurrency for high-profile clients.
Russian Members of the Network Transferred Tether to Zhdanova
The WSJ report, citing the U.S. Treasury Department, claimed Russian members of the network transferred tether to digital wallets controlled by Zhdanova.
She is also accused of helping one client obscure the origins of funds used to purchase property in the U.K.
Zhdanova and five other individuals have now been sanctioned, adding to her blacklisting last year.
“Russian elites sought to exploit digital assets—in particular U.S. dollar-backed stablecoins—to evade U.S. and international sanctions, further enriching themselves and the Kremlin,” said Bradley Smith, acting undersecretary for terrorism and financial intelligence at the U.S. Treasury.
Tether, one of the most widely transacted cryptocurrencies, operates as a stablecoin pegged to the U.S. dollar. Unlike government-regulated currencies, its transactions often occur outside of traditional financial oversight.
While Tether Holdings, the British Virgin Islands-based issuer, was not directly implicated in this investigation, U.S. authorities are separately probing the company for potential violations of financial crime laws.
Messages retrieved from Zhdanova’s Telegram account reveal she arranged substantial ruble-to-Tether transactions, with digital wallets linked to her handling over $350 million.
Her extensive connections in Russia reportedly included links to oligarchs and high-ranking officials.
Zhdanova, who once managed luxury travel services and boutique hotels in Moscow, was detained in France in late 2023 as part of a separate money-laundering investigation.
U.K. Accuses Smart Group of Funding Russian Spies
The U.K.’s National Crime Agency (NCA), which collaborated with the U.S. Treasury, has accused Smart Group of funding Russian espionage and laundering money for various criminal enterprises, including the notorious Irish Kinahan cartel.
A London-based network, allegedly directed by Zhdanova, has allegedly laundered approximately $19 million through cash handovers across Britain.
The NCA noted that cash deliveries were often followed by near-immediate cryptocurrency transactions of equivalent value.
These funds were used by criminal gangs to purchase drugs and firearms without moving physical money across borders.
Authorities have made 84 arrests in connection with the network, the report said.
Last week, Russian President Vladimir Putin signed a federal law introducing a new tax rule on crypto mining while granting legal recognition to digital currencies as property.
The legislation, detailed in an official document released on November 29, outlined tax regulations and requirements for the cryptocurrency sector.
Russia’s push to regulate cryptocurrency mining took a significant step forward when it legalized crypto mining in August 2024.
The legislation, which took effect on November 1, only allows registered Russian entities and entrepreneurs to mine cryptocurrency.
