#cryptonews
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.
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.
The WSJ report, citing the U.S. Treasury Department, claimed Russian members of the network transferred tether to digital wallets controlled by Zhdanova.
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.
“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.
A London-based network, allegedly directed by Zhdanova, has allegedly laundered approximately $19 million through cash handovers across Britain.
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.
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.
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.