A billion-pound money-laundering network operating across 28 towns and cities in the UK has been converting proceeds from drug trafficking, firearms sales and organized crime into cryptocurrency, with some of those funds ultimately helping Russia sidestep sanctions and bankroll its war effort, Sky News reported, citing National Crime Agency (NCA).

The operation, uncovered through the NCA’s long-running "Operation Destabilise," has already led to 128 arrests and the seizure of more than £25 million in cash and digital assets. Investigators say the network was so entrenched that it even acquired its own bank to streamline illicit payments linked to Russian interests.

Couriers reportedly collected bags of “dirty” cash before it was rapidly moved into crypto markets. The NCA warned that these flows are not just fuelling UK criminal activity but also connecting directly to “geopolitical events causing suffering around the world.”

Blockchain transparency

Despite the common perception that digital assets offer anonymity, the NCA stressed that blockchain transparency is proving instrumental in mapping these criminal pipelines.

Chainalysis' vice president, Madeleine Kennedy, told Sky News that public blockchains provide “a poor vehicle for money laundering,” enabling law enforcement to trace funds tied to drug trafficking, sanctions evasion and cybercrime.

One alleged ringleader, Russian national Ekatarina Zhdanova, described by investigators as a key financial conduit for cybercriminals and Russian elites, is currently detained in France awaiting trial.

UK security minister Dan Jarvis said the operation exposes how Russia relies on covert financial channels, including crypto-based laundering, to evade sanctions.

“It will never be tolerated on our streets,” Jarvis said.