The U.S. Department of Treasury on Friday sanctioned Ekaterina Zhdanova, an accused Russian money launderer who allegedly helped her country’s oligarchs move funds out of Moscow using cryptocurrency to evade Western sanctions.
According to an official Treasury announcement, Zhdanova allegedly also helped ransomware groups and other “illicit actors” launder their gains.
“We remain focused on safeguarding the U.S. and international financial system against those who seek to exploit this technology [cryptocurrency], among other illicit finance risks in the virtual assets ecosystem,” said Brian Nelson, undersecretary of the Treasury for Terrorism and Financial Intelligence.
Zhdanova has reportedly used cryptocurrency exchanges such as Garantex to shift large sums of money across borders. She also is accused of transporting cash physically, as well as using traditional businesses as fronts for her operation, including an international luxury watch business that was not identified by name in the Treasury’s announcement.
Her main clientele are Russian elites living outside of the country. According to one allegation, a Russian oligarch based in the United Arab Emirates contacted Zhdanova to move more than $100 million; she did so by using physical cash and virtual currency.
Once an account becomes based in a country that is not sanctioned, a Russian oligarch can transfer the money all over the world, undermining international restrictions that were imposed in the aftermath of Russia’s invasion of Ukraine.
The new sanctions placed on Zhdanova mean that she is now blocked from accessing any property of hers in the U.S., and banks and cryptocurrency exchanges that continue to do business with her will be exposed to sanctions themselves.
…