The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned a Russian national for her involvement in laundering millions in cryptocurrency for various individuals, including ransomware actors.
Ekaterina Zhdanova reportedly assisted Russian elites and illicit actors in evading US and international sanctions, particularly by exploiting virtual currency.
After Russia invaded Ukraine in 2022, OFAC imposed extensive economic sanctions on the Russian financial system.
In March 2022, Zhdanova is alleged to have laundered $2,300,000 of suspected ransom payments made to one affiliate of the Ryuk ransomware operation. The Ryuk group has posed a significant cybercrime threat, mainly targeting hospitals and healthcare providers in the United States.
Zhdanova employed virtual currency to facilitate cross-border transactions and leverage entities lacking Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) controls, like the OFAC-designated Russian cryptocurrency exchange, Garantex Europe OU.
She allegedly utilized multiple methods, including cash, connections to international money laundering associates and traditional businesses such as a luxury watch company with a global presence.
Apart from ransomware, Zhdanova also assisted Russian oligarchs in evading sanctions imposed by the Western world in response to Russia’s invasion of Ukraine. One instance involved moving over $100m in wealth for a Russian oligarch to the United Arab Emirates.
Authorities have also confirmed several cases where she arranged for Russian clients to obtain UAE tax residency, ID cards, and bank accounts.
As a result of the OFAC sanctions, Ekaterina Zhdanova will have all her U.S.-based assets frozen, while U.S. persons and entities will be prohibited from engaging in any transactions with her.
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