The United Kingdom has intensified its fight against Russian sanctions evasion with a major law enforcement campaign, Operation Destabilise, resulting in 128 arrests and the seizure of $32.6 million in cryptocurrency and cash. Led by the National Crime Agency (NCA), this initiative targets sophisticated money laundering and sanctions circumvention networks operating within the UK and internationally, highlighting how digital assets and traditional finance platforms facilitate illicit financial flows tied to Russia’s efforts to bypass Western sanctions.
Background and Scope of Operation Destabilise
Operation Destabilise, initially launched in 2024, focuses on disrupting criminal networks linked to Russia that use multiple financial channels from banks to cryptocurrencies to shield illicit funds from economic restrictions. By December 2024, the operation had already made 84 arrests and seized approximately $25.5 million. The most recent update from the NCA added 45 new arrests along with over $6.6 million in additional cash confiscated, bringing the total to 128 individuals apprehended and $32.6 million seized in various forms including cryptocurrencies and physical cash.
These networks have been identified across at least 28 towns and cities in the UK. They are believed to convert illicit proceeds generated from drug trafficking, firearms sales, and human trafficking into cryptocurrencies, which are then laundered or invested in legitimate enterprises. Notably, some of these funds are suspected to be channeled towards buying military equipment for Russian forces engaged in Ukraine, illustrating the operation’s geopolitical importance.
Key Financial Networks and Entities Involved
Among the highlighted groups are two criminal networks named Smart and TGR, implicated in organized money laundering and aiding Russian nationals to bypass sanctions while investing in the UK. A significant discovery was the involvement of George Rossi, head of the TGR group, who is linked to Altair Holding SA, a Luxembourg-based company under UK sanctions. Altair Holding notably acquired a 75% stake in Kyrgyzstan’s Keremet Bank on Christmas Day 2024. Investigations show that Keremet Bank has been facilitating cross-border transactions for Promsvyazbank, a Russian state-owned bank providing finance to military suppliers.
Promsvyazbank is also associated with A7A5, a stablecoin pegged to the rouble currency, which has transacted over $40 billion by July 2025. This innovative digital currency is reportedly designed to circumvent Western sanctions, evidencing the growing use of blockchain technology in illicit financial flows.
Role of Cryptocurrency and Blockchain in Sanctions Evasion
Cryptocurrency plays a critical role in these evasion efforts. Law enforcement agencies have targeted cryptocurrency exchanges such as Grinex and Meer, implicated in propagating a rouble-backed cryptocurrency token designed to sidestep sanctions. This token alone managed to move approximately $9.3 billion in four months through a dedicated crypto exchange, providing Russian entities with alternative financial mechanisms.
This rising use of cryptocurrencies reflects the expanding frontiers of financial crime, where sophisticated actors increasingly blend traditional banking systems with digital assets to evade oversight. The UK-led operation exemplifies an adaptive approach by authorities, harnessing blockchain intelligence to identify and intercept illicit money flows on a global scale.
Broader Context of Money Laundering Networks
The UK authorities have uncovered that these laundering networks are vastly international, operating across Europe, the Middle East, Central Asia, and parts of Asia. They involve complex webs of cash couriers, cryptocurrency transactions, payment processors, and shell companies, creating a deeply embedded global ecosystem of Russian-linked money laundering. This system facilitates the movement of billions of dollars across borders, effectively enabling sanctions evasion and illicit financial activities on multiple continents.
Despite the significant crackdown, authorities acknowledge the challenge in completely dismantling these networks. Analysts suggest while Operation Destabilise has curtailed laundering activities in London and other UK cities, new hubs may emerge elsewhere, reflecting the dynamic and resilient nature of international financial crime syndicates.
Impact and Official Statements
The National Crime Agency has emphasized that these enforcement efforts have made an impact by restricting Russian-linked networks’ access to legitimate banking services in Western Europe. This increased caution among illicit actors is a sign of progress in disrupting their operations. Nevertheless, comprehensive measurements of declines in laundering activities remain complex owing to the covert and evolving methods employed by these networks.
Ari Redbord, Vice President at TR Labs specializing in blockchain intelligence, highlighted the friction created by UK authorities’ actions on Russian financial ecosystems but also noted the difficulty in conclusively proving an overall reduction in laundering specifically in London.
Government and Legal Framework
The UK government continues to strengthen its legal framework to combat foreign interference and economic crimes, notably through sanctions enforcement and enhanced powers under acts like the National Security Act. This legislation supports actions against foreign intelligence threats and financial crimes, as illustrated by other recent arrests related to Russian intelligence cooperation.