Two men have been sentenced to a combined 13 years in prison by a UK court for laundering over £6 million (approximately $7.6 million) in a crypto-fueled war profiteering scheme tied to the conflict in Ukraine. The convictions were handed down on April 7 following a five-week trial at Wood Green Crown Court.
Valeriy Popovych, 52, and Vitaliy Lutsak, 43, were found guilty of using cryptocurrency to conceal proceeds from a criminal operation that capitalized on wartime demand for vehicles in Ukraine. According to prosecutors, the group used stolen funds to purchase vans and lorries intended for export—later converting large portions of the revenue into crypto to obscure the money trail.
Investigators revealed that some of the laundered funds were used to acquire high-value assets, including a second London residence worth nearly £1 million ($1.27 million). Additional suspects remain under scrutiny: Oksana Popovych, Valeriy’s wife, is scheduled for sentencing on May 30, while another associate, Semen Kuksov, was sentenced in February to over five years in prison for managing the laundered funds.
Authorities said the group exploited gaps in crypto regulation to move millions in under 18 months—reinforcing concerns about how digital assets are used within transnational crime networks.
Crypto Wallets Held $14M in Laundered War Profits
A years-long investigation by the UK’s Metropolitan Police uncovered that over $14 million in cryptocurrency was laundered through wallets tied to the group. The convicted men were found guilty of transferring criminal property and operating an unregistered money service business.
Authorities traced the crypto flow to wallets stored on a personal computer seized during the operation. The laundering scheme relied on a network of vehicle purchases and crypto transfers to disguise the origins of illicit cash—much of it linked to profiteering during the early stages of the Russia-Ukraine conflict.
Detective Constable Harry Davies, who led the investigation, said Valeriy Popovych posed as a legitimate tradesman in the second-hand lorry market, using industry ties to “clean criminal cash.” Davies emphasized that Popovych viewed the war not as a tragedy, but as a financial opportunity.
Negeen Momtahen, a specialist prosecutor at the Crown Prosecution Service, called the case a stark reminder that money laundering is not a victimless crime. She added that this prosecution builds on earlier convictions of others in the same network and reflects the CPS’s ongoing commitment to dismantling financial crime operations built on human suffering.
The sentencing of Popovych and Lutsak marks a key milestone in the UK’s crackdown on the use of cryptocurrency for laundering war-related illicit funds. As regulators and law enforcement agencies increase their scrutiny of crypto transactions, this case highlights the deepening intersection between digital finance and organized crime. While crypto remains a powerful tool for innovation, it also presents complex challenges for global enforcement frameworks.
Quick Facts
- Two men were sentenced to a combined 13 years for laundering over $7.6 million via cryptocurrency linked to Ukraine war profiteering.
- More than $14 million passed through wallets stored on a personal computer, according to UK police.
- Authorities say the gang exploited crypto’s opacity to move funds tied to vehicle exports and illicit profits.
- The investigation remains ongoing, with additional defendants already sentenced or awaiting court rulings.
