Britons buying cocaine on a Friday night could be inadvertently funding Russia’s war in Ukraine.
The National Crime Agency has revealed a billion-pound money laundering network is operating in 28 towns and cities across the UK.
Couriers collect “dirty” cash generated from drugs, firearms and immigration gangs, which is then converted into cryptocurrency.
Officials say these illicit transactions have a direct link to “geopolitical events causing suffering around the world”.
This network was first exposed because of Operation Destabilise – and to date, 128 arrests have been made, with more than £25m in cash and digital assets seized.
A bag stuffed with cash recovered as a result of Operation Destabilise. Pic: PA
According to the NCA, the enterprise is so prolific that it purchased a bank to facilitate payments that supported Russia’s military efforts and helped sidestep sanctions.
Posters have been put up in motorway service stations to target couriers, which warn it is “just a matter of time” before they will be arrested.
The NCA’s deputy director for economic crime, Sal Melki, has warned the threat posed by this money laundering network is significant.
He added: “Cash couriers play an intrinsic role in this global scheme. They are in our communities and making the criminal ecosystem function – because if you cannot profit from your crimes, why bother.
“They are paid very little for the risks they take and face years in prison, while those they work for enjoy huge profits.”
A poster put up in motorway service station toilets by the NCA. Pic: PA
Mr Melki went on to warn that “easy money leads to hard time” – and earning just a few hundred pounds through laundering could lead to years behind bars.
The NCA says Operation Destabilise has already had an impact in criminal circles, with some members of the network now reluctant to operate in London.
Those involved in the money laundering effort have also started to charge higher fees – reflecting the difficulty of cleaning ill-gotten gains.
Cryptocurrencies are often regarded as a haven for criminals because they are perceived to be anonymous, but it is possible to trace these transactions.
Chainalysis is a company that monitors suspicious activity on blockchains, a type of database that keeps records of who sends and receives digital assets – as well as how much.
Its vice president of communications Madeleine Kennedy told Sky News: “Public blockchains are transparent by design, which makes cryptocurrencies a poor vehicle for money laundering.
“With the right tools, law enforcement can trace illicit funds – whether they’re connected to drug trafficking, sanctions evasion, or cybercrime – and use those insights to disrupt networks and recover assets.”
Read more:
Sky News joins police raid on Turkish barber shop
Crypto scammer jailed after UK’s biggest Bitcoin bust
Ekatarina Zhdanova. Pic: NCA
Last December, a global investigation led by the NCA smashed two networks whose money laundering activities were prevalent in 30 countries.
Bundles of cash were seized during raids, with detectives describing Smart and TGR as the invisible link between “Russian elites, crypto-rich cybercriminals and drug gangs in the UK”.
One of the network’s ringleaders, a Russian national called Ekatarina Zhdanova, is currently in custody in France and awaiting trial for separate financial offences.
Security minister Dan Jarvis added: “This complex operation has exposed the corrupt tactics Russia used to avoid sanctions and fund its illegal war in Ukraine.
“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.”