Crypto money-laundering ring bought weapon parts for Russia's war effort

The criminals obtained weapon parts in the U.S. and delivered them to Russia.

The criminals obtained weapon parts in the U.S. and delivered them to Russia. They used Tether among other tools for their operations. A suspected money-laundering ring reportedly used cryptocurrencies to finance Venezuelan oil and equipment for the Russian military. The group has at least seven members, including two Venezuelans and five Russians. They have been arrested. The criminals mainly used the largest stablecoin, USDT, for their plan. This comes from an indictment by the U.S. Department of the Treasury.

"The defendants were criminal accomplices of oligarchs who carried out a complex scheme to illegally acquire U.S. military technology and Venezuelan sanctioned oil through a variety of transactions involving shell companies and cryptocurrencies," said US Attorney Breon S. Peace.

Military equipment and weapons for Russia

The money-laundering ring operated through a network of shell companies, including Nord-Deutsche Industrieanlage GmbH, according to the FBI. They bought parts for Russian military equipment from U.S. companies, including semiconductors and microprocessors. These are used in combat aircraft and missile systems. The gang supplied the parts to Russian companies sanctioned by the U.S. According to the indictment, they found some of the parts on the battlefield in Ukraine. Three suspects also traded 500,000 barrels of Venezuelan oil via USDT.

One of the arrestees, Yury Orekhin, reportedly texted one of his gang members: Do not worry, no stress. As soon as we invest, we will transfer it right away. USDT works as fast as a text message. The money launderers are also said to have completed a transaction of more than three million dollars in unidentified cryptocurrencies. The defendants could face up to 30 years in prison.