The US Treasury’s Office of Foreign Assets Control (OFAC) has today issued sanctions against a number of individuals and entities connected to Russian sanctions evasion, money laundering and the funding of espionage operations. The entities targeted by today’s action are believed to be connected to a money laundering network called TGR Group. OFAC has identified crypto addresses connected to two of these individuals, Elena Chirkinyan and Khadzi Murat Dalgatovich Magomedov.
In the accompanying press release, OFAC states; “the network provides a range of services to place, layer, and integrate illicit financial schemes into the global financial system. These include: the laundering of funds associated with sanctioned entities” and ”providing an unregistered service to exchange cash and cryptocurrency”, amongst others.
An article previously published by a Ukrainian website states that an individual with the name Khadzhi Murat Magomedov may be related to Ekaterina Zhdanova, who was previously sanctioned by OFAC for her role in “laundering and moving funds using virtual currency on behalf of Russian elites”. The article describes Magomedov as a “notable businessman in the market for cash withdrawal and crypto transfer”. According to the article, leaked data shows that Magomedov has previously visited Federation Tower in Moscow, a building known to house several OTC crypto brokers and exchanges including the previously-sanctioned Garantex. According to OFAC’s press release, Magomedov and Zhdanova “regularly coordinated to facilitate bulk cash and cryptocurrency money laundering transactions internationally.”
Meanwhile, Elena Chirkinyan is described by OFAC as “a decision maker within the TGR Group” and was found to have “arranged cash handovers in which USDT was sent to a cryptocurrency address controlled by Zhdanova, and in return cash was received by the TGR Group.”
Today’s action by OFAC was announced alongside a press release published by the United Kingdom’s National Crime Agency, which states “an international NCA-led investigation – Operation Destabilise – has exposed and disrupted Russian money laundering networks supporting serious and organised crime around the world: spanning from the streets of the UK, to the Middle East, Russia, and South America”.
Discussing this operation, Rob Jones, Director General of Operations at the National Crime Agency said “for the first time, we have been able to map out a link between Russian elites, crypto-rich cyber criminals, and drugs gangs on the streets of the UK”.
Crypto activity
OFAC’s press release states that in particular, the TGR Group has made use of “U.S. dollar-backed stablecoins”
OFAC has listed one Ethereum address connected to Magomedov. This address received over $205 million in cryptoassets between July 2019 and February 2022, the majority of which is USDT.
The press release issued today by the NCA states “TGR’s crypto addresses showed regular exposure to Garantex”. Some of this activity can be seen in the Elliptic Investigator graph below, which demonstrates millions of dollars of cryptoassets moving indirectly between Magomedov and Garantex.
Furthermore, OFAC has listed one Tron address connected to Chirkinyan. This address, which is part of a centralised crypto exchange, has received a much smaller amount of just over $146k between August 2022 and February 2023. Similarly to Magomedov, the majority of activity connected to this Tron address involves USDT.
How we can help
Elliptic has taken urgent action to ensure that addresses connected to Magomedov and Chirkinyan are available to screen and trace using our next-generation Holistic blockchain analytics technology.
Users will now be able to ensure that they do not inadvertently process funds originating from – or being sent to – the individuals included in this designation. Elliptic continues to engage in preemptive monitoring of high-risk areas of criminality. You can contact us for further information or schedule a demo.
To stay up to date with the latest crypto crime trends and ensure you are protected, you can access insights from our global policy and research teams at the Elliptic blog.
