The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury has cracked down a money laundering chain connected to Russian nations.
According to official reports, several people and organizations connected to a money laundering network that used tether (USDT) and other cryptocurrencies to transfer assets for Russian interests were sanctioned by the Office.
The incident comes as one of the many involving illegal money laundering undertaken by Russian nationals.
OFAC Sanctions Individuals In Crypto Money Laundering Case
According to the press release, OFAC worked with the United Kingdom and the United Arab Emirates to disrupt this network.
Five new people and four organizations connected to the TGR Group money laundering network have been sanctioned by OFAC overall.
According to reports, the TGR Group, which is purportedly run by George Rossi, offers services like selling cryptocurrency for cash and vice versa, a pre-paid card service, and assistance in allowing “Russian nationals to purchase property in the United Kingdom.”
How Did The Money Laundering Happen?
According to the press release, Rossi “processed USDT transactions after its date of designation by leveraging Garantex OU, a Russian cryptocurrency exchange sanctioned by OFAC.”
One of the alleged transgressions committed by Garantex was handling a range of transactions originating from the Hydra dark market.
Global Money Laundering Cases See Steady Rise
Money laundering cases have seen a steady rise and the involvement of crypto in such cases has also increased. However, with the rise in geopolitical tensions, the involvement of crypto in illicit activities especially in war prone areas has risen significantly.
Just previously, a Russian national was detained by Polish police on charges of money laundering while operating a cryptocurrency exchange.
The man was reportedly arrested on December 6th after the US requested his extradition on suspicion of money laundering and theft while operating a fraudulent cryptocurrency exchange.
The money laundering trend is not exclusive to Europe or Russia. Another suspect in money laundering related to the cryptocurrency industry has been arrested by the Enforcement Directorate of India.
Interestingly, according to TRM Labs, Tether was the most popular stablecoin for cryptocurrency-related criminal activity last year, when the total amount of illegal transactions in the industry decreased as more digital asset companies were sanctioned.
In 2023, the USDT token was connected to $19.3 billion illegal transactions, compared to $24.7 billion the year before, according to a report and email answers from blockchain analytics firm TRM Labs.