US sanctions Russian money laundering network that used USDT

The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it had sanctioned several individuals and entities related to a money laundering network that relied on tether (USDT), as well as other cryptocurrencies, to move assets for Russian interests. 

The United Kingdom and the United Arab Emirates collaborated with OFAC to disrupt this network, according to the press release.

In total, OFAC has sanctioned five new individuals and four entities that were associated with the TGR Group money laundering network. 

What did this money laundering network look like?

The TGR Group, allegedly controlled by Ukrainian national George Rossi, supposedly provides services exchanging cash for crypto (and vice versa), a pre-paid card service, and helping enable “Russian nationals to purchase property in the United Kingdom.”

The press release also notes that Rossi “leveraged OFAC-sanctioned Russian crypto exchange, Garantex OU, to process USDT transactions after its date of designation.”

Among Garantex’s alleged wrongdoings was processing a variety of transactions that came from the Hydra dark market. 

Read more: Sanctioned crypto exchange Garantex probed over $20B USDT transfers 

TGR Group’s alleged money laundering network relied on a variety of entities across the world, including in Wyoming. Pullman Global Solutions LLC is allegedly more than half owned by Andrejs Bradens.

Bradens, a Latvian national, not only owns Pullman Global but also has ties to other TGR Group entities, such as TGR Corporate Concierge LTD., a firm based in the United Kingdom. 

According to the Treasury press release, Elena Chirkinyan, who is allegedly “a direct subordinate to Rossi,” leads this entity, which holds significant importance for the network. Chirkinyan was previously allegedly involved in transferring funds from RT (formerly Russia Today); apparently this was “likely to support the activities of a UK-sanctioned Russian-language media organization in the United Kingdom.”

Chirkinyan apparently “also arranged cash handovers in which USDT was sent to a cryptocurrency address… and in return cash was received by the TGR group.”

Chirkinyan additionally allegedly worked on the ability for Russian nationals to purchase property in the United Kingdom.

Analysis from CoinDesk suggests that Tether froze approximately $8 million in USDT yesterday. 

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