Ukraine War Profiteers Jailed for $7.3M Crypto Money Laundering

Two members of a criminal network involved in laundering war profiteering funds through cryptocurrency have been sentenced to prison in the UK.

Valeriy Popovych, 52, and Vitaliy Lutsak, 43, were convicted on 7 April at Wood Green Crown Court after a five-week trial.

The pair received a combined 13-year sentence for laundering over £6 million ($7.6 million), part of which funded the purchase of a second London home valued just under £1 million ($1.27 million).

Oksana Popovych, 42, Valeriy’s wife and a third member of the gang, is scheduled to be sentenced on 30 May.

A fourth accomplice, Semen Kuksov, who oversaw a portion of the laundered funds, was sentenced to more than five years in February.

Crypto Regulation Gaps Help Gang Profit in the Millions

The gang exploited Ukraine’s high demand for vans and lorries amidst the ongoing war, using illicit funds to purchase the vehicles.

Their criminal activity was facilitated by the absence of clear cryptocurrency regulations, which allowed them to maximise profits and launder millions in just over a year.

A thorough investigation by the Metropolitan Police uncovered that the group had transferred criminal property and operated an unregistered money service business.

Police also discovered over $14 million in cryptocurrency moved through wallets stored on a computer, further highlighting the scale of the operation.

Metropolitan Police Detective Constable Harry Davies, from the Metropolitan Police, who led the investigation, said:

"Mr Popovych presented himself as a hardworking, legitimate tradesman and used his reputation within the second-hand lorry market to clean criminal cash. He also callously saw the conflict in Ukraine as a lucrative business opportunity."

Negeen Momtahen, Specialist Prosecutor for the Crown Prosecution Service, noted:

"Money laundering is not a victimless crime – it is the financial lifeline which enables criminals to profit from their illegal activities. Last year we convicted other key members of this same money laundering network. I hope this latest prosecution demonstrates our ongoing determination to dismantling these criminal operations and bringing all involved to justice."