The US Treasury Department is cracking down on a money laundering scheme allegedly used by wealthy Russians to dodge sanctions. Five individuals linked to the TGR Group are facing sanctions for their role in helping Russian elites circumvent restrictions imposed after the Ukraine invasion.
The Scheme: Using Crypto to Hide Wealth
The TGR Group, reportedly controlled by George Rossi (a Russian-born Ukrainian national), allegedly used cryptocurrencies, specifically the USDT stablecoin, to process funds for wealthy Russians. This allowed them to continue making high-value transactions and investments despite international sanctions. The group’s activities included:
- Laundering money for sanctioned entities.
- Unregistered cryptocurrency and cash exchange services.
- Providing clients with cash via crypto.
- Offering prepaid credit card services.
- Hiding the origins of funds used to purchase UK properties.
Other individuals sanctioned alongside Rossi include Elena Chirkinyan, Andrejs Bradens, Khadzi-Murat Dalgatovich Magomedov, and Nikita Vladimirovich Krasnov. All assets these individuals hold in the US are frozen.
Treasury’s Response: Stopping the Flow of Funds
Acting Under Secretary for Terrorism and Financial Intelligence, Bradley T. Smith, stated that the TGR Group exploited digital assets, particularly USDT, to help Russian elites evade sanctions and enrich themselves and the Kremlin. The sanctions aim to disrupt this network and prevent further attempts to bypass international restrictions.
