U.S. Treasury Unveils Russian Crypto Money Laundering Scheme to Bypass Sanctions

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has imposed sanctions on several individuals and entities tied to a Russian money laundering operation that utilized Tether (USDT) and other cryptocurrencies for illicit transactions.

This move, coordinated with the United Kingdom and the United Arab Emirates, aims to disrupt the network’s operations.

The sanctioned individuals and groups are linked to the TGR Group, allegedly run by Ukrainian national George Rossi. The group is said to have provided services like cash-to-crypto exchanges, prepaid card solutions, and support for Russian nationals looking to purchase property in the UK. OFAC has targeted five individuals and four entities connected to these illicit activities.

One key component of the network’s operations was Garantex OU, a Russian crypto exchange already sanctioned by OFAC. Garantex was accused of processing USDT transactions, including those related to Hydra, a notorious online criminal marketplace. Additionally, TGR Group’s operations extended to Wyoming, where Pullman Global Solutions LLC, partly owned by Latvian national Andrejs Bradens, was reportedly involved. Bradens is connected to other entities affiliated with TGR, such as TGR Corporate Concierge LTD in the UK.

Elena Chirkinyan, closely associated with Rossi, played a significant role in the network. According to Treasury reports, Chirkinyan helped transfer funds from RT (formerly Russia Today) to support a sanctioned Russian-language media outlet in the UK. She is also accused of facilitating cash-for-crypto exchanges, with USDT being exchanged for cash, and of assisting Russian citizens in purchasing property in the UK, further expanding the financial reach of the network.

In response to the sanctions, Tether froze approximately $8 million in assets linked to the operation on the same day the measures were implemented.