UK Drug Gang Launches Meme Coin to Launder Criminal Profits in Unprecedented Crypto Move

In a development that may mark the first case of its kind in the UK, a drug gang based in Britain has reportedly created its own cryptocurrency—a meme coin—in a bid to launder proceeds from criminal activity. The group is leveraging the viral nature of meme coins, digital currencies designed to gain traction online, to obscure the origins of illicit funds and potentially rake in huge profits.

While criminal networks have long turned to established cryptocurrencies like Bitcoin to clean dirty money, experts say this latest tactic represents a new level of sophistication. “Criminals have been using crypto to launder money for at least 15 years,” said Gary Carroll, a drug crime specialist and former police officer now with Claymore Advisory Group. “But developing a meme coin is one step further than simply buying cryptocurrencies like Bitcoin and Ethereum. [It] suggests the process is becoming easier.”

The strategy reportedly being deployed by the gang revolves around a “pump and dump” model. The idea is to artificially inflate the value of the newly minted meme coin, then cash out at a profit once demand spikes. “The gang created a – meme coin’ – a type of cryptocurrency designed to gain popularity online and rapidly increase in value,” Carroll explained.

Although Carroll declined to disclose the name of the coin or the criminal group behind it, he confirmed the operation is live and ongoing. The gang in question is described as a “mid-level” organization involved in drug trafficking, fraud, and extortion. “They’re not a household name – but they’ve got enough to throw in a few hundred grand and get the coin off the ground,” he said.

Carroll, who has authored over 1,000 expert reports and testified in numerous Crown Court trials, believes the use of bespoke cryptocurrencies for laundering is likely to become more widespread. “It’s just one step further than urban street gangs investing in crypto,” he noted. “Why invest in the coin when they can just start one themselves?”

The situation draws comparisons to the notorious OneCoin scandal, which began in 2014 when Ruja Ignatova launched what was eventually revealed to be a pyramid scheme. UK investors lost an estimated £100 million in that case, underscoring the immense financial risks tied to fraudulent crypto ventures.

“There are lots of meme coins out there that do absolutely nothing but have huge uptakes,” Carroll added. “The potential rewards are astronomical.”

By fLEXI tEAM