OFAC targets Ekaterina Zhdanova for laundering over $100m by way of crypto, evading sanctions for Russian oligarchs and aiding ransomware associates.
The U.S. Division of the Treasury’s Workplace of Overseas Belongings Management (OFAC) has announced sanctions towards Ekaterina Zhdanova, a Russian nationwide implicated in vital cash laundering operations involving cryptocurrencies. Zhdanova is accused of facilitating over $100 million in transactions for a Russian oligarch to the United Arab Emirates, in addition to dealing with giant sums for a Ryuk ransomware affiliate.
In line with OFAC’s investigation, Zhdanova’s actions supplied a channel for Russian elites to keep up their wealth and standing regardless of the in depth sanctions imposed following Russia’s invasion of Ukraine. Notably, her methods included the institution of tax residency and identification companies within the UAE, enabling purchasers to create an apparently professional origin of funds. This deception method was designed to resist scrutiny from worldwide banking authorities.
Using cryptocurrencies and entities with lax regulatory oversight, Zhdanova has been a pivotal determine in transferring illicit funds throughout borders. Her affiliation with the luxurious watch trade additional offered a facade of legitimacy and sustained entry to the worldwide monetary community.
Cybercrime ties and sanction particulars
Zhdanova allegedly laundered over $2.3 million in 2021 alone for the Ryuk ransomware gang. The group has notably focused hospitals and healthcare suppliers within the U.S., representing a extreme cyber menace.
The sanctions mandate the freezing of Zhdanova’s property inside U.S. jurisdiction and prohibit transactions along with her by U.S. individuals. Monetary establishments partaking with Zhdanova or related entities threat sanctions or enforcement actions.