Russian Spy Ring Funds Espionage Through Crypto Laundromat, UK Police Reveal

Russian spy ring financed via Cryptocurrency laundromat

UK law enforcement uncovered a central Russian spy ring funded through a sprawling money-laundering operation involving cryptocurrency conversions, police disclosed in November 2025. The National Crime Agency (NCA) traced billions of dollars moving through two crypto laundromats based in Moscow and Dubai that converted illicit cash into untraceable cryptocurrency.

Operation Destabilise: the NCA has exposed a billion-dollar money laundering network that purchased a bank to fund the Russian war effort.

Read the full story ➡️ @metpoliceUK @gardainfo pic.twitter.com/90vYyMLqou

— National Crime Agency (NCA) (@NCA_UK) November 21, 2025

One prominent network, dubbed “Smart,” was operated by Ekaterina Zhdanova, a Russian businesswoman already sanctioned by the U.S. government. This crypto ring enabled Russian intelligence services and cybercriminals to funnel money for espionage, including activities targeting journalists and politicians in the UK. The spy ring involved six Bulgarian nationals convicted of spying and conspiracy, highlighting deep-rooted connections between Russian elites, cybercriminals, and criminal networks in the UK.

Wider crime networks and international impact

Alongside spying operations, the crypto laundromat facilitated money laundering for major UK drug gangs struggling to move cash during pandemic lockdowns. This criminal infrastructure exchanged dirty street cash for cryptocurrency, masking illicit proceeds through legitimate businesses like UK construction firms. The operation spanned more than 30 countries, resulting in 84 arrests globally, with 71 in the UK.

The networks also profited from ransomware attacks, converting digital extortion proceeds into usable funds. The financial flows supported not only espionage but also enabled significant criminal enterprises to operate with reduced risk of detection. Authorities seized £20 million in cash tied to approximately £700 million in drug sales.

NCA officials emphasized that they now closely monitor such complex schemes to disrupt the convergence of state-backed espionage and organized crime.

Meanwhile, the UK is rapidly overhauling its oversight of digital assets . The Financial Conduct Authority (FCA) has drastically cut approval times for crypto firms from 17 to 5 months, boosting registration rates. This acceleration is part of a plan for comprehensive, banking-style crypto regulation by 2026, covering financial crime and operational resilience. The UK is also discussing joint oversight of stablecoins and cross-border frameworks with the U.S., aiming to solidify its position as a global digital asset hub.