Gushiken Yona
In a new twist on financial crime, a British drug gang has reportedly minted its own digital currency. The goal isn’t internet fame for their meme coin, a crime expert warns, but pioneering a brazen new method of crypto money laundering.
Expert Flags Novel “Meme Coin” Scheme
This unusual venture was brought to light by Gary Carroll, a specialist in drug crime analysis with years of policing experience. He learned of the active scheme through his contacts, though he couldn’t name the gang or the specific coin to protect those sources. Carroll, an expert witness who has studied the methods of organized crime, described the digital asset simply as a “meme coin.”
These aren’t currencies built on groundbreaking technology. Often, they spring from internet jokes or online trends, designed primarily to gain viral attention. The gang’s alleged goal, according to Carroll, is straightforward financial manipulation – a form of crypto money laundering known as a “pump and dump.”
Pump and Dump: The Crypto Money Laundering Method
The mechanics sound almost like a startup parody. Illicit funds, likely from drug trafficking or fraud, were reportedly used to pay developers. These developers built a technically functioning cryptocurrency.
Once launched, the gang hopes it catches the public’s eye, perhaps fueled by social media buzz. “They are hoping to get the coin onto popular wallets and for the public to fall on it and turn it into the next Dogecoin,” Carroll explained in a recent interview.
If online hype drives the price up, even modestly, the gang plans to sell their holdings rapidly. This sudden sell-off would likely crash the coin’s value, leaving later investors holding worthless digital tokens.
But for the gang, the profit, now detached from its illegal origins, could appear legitimate. “Even if the coin only rises by a small amount they could still make a lot of money before selling out,” Carroll noted. This strategy is a known tactic, but applying it via a self-created coin marks a significant development in crypto money laundering.
Mid-Level Gangs Entering the Crypto Fray Amid Crackdown
Carroll described the group involved as “mid-level” operators. They aren’t necessarily dominating the drug trade but are involved in extortion, fraud, and selling counterfeit goods alongside drugs.
Based mainly in England, they have international links and enough capital – perhaps a few hundred thousand pounds – to fund the coin’s creation. “They’re not a household name,” he said, but resourceful enough to try this novel approach.
For years, criminal organizations have relied on established cryptocurrencies like Bitcoin for moving illicit funds. But the landscape is shifting. Britain’s National Crime Agency (NCA) recently detailed a major success against large-scale crypto money laundering networks.
As reported by the BBC in late 2024, the NCA uncovered sprawling operations, like the Moscow-based Smart and TGR networks, which specialized in swapping drug gangs’ cash for cryptocurrency. These networks became particularly crucial during pandemic lockdowns, investigators found, when gangs struggled to move mountains of physical cash.
The Russian-linked services offered a lifeline, taking the risky cash off their hands (for a fee) and providing crypto in return, sometimes sourced from ransomware attacks. The NCA’s operation led to dozens of arrests in the UK, including couriers caught moving millions, significantly disrupting these established channels for crypto money laundering.
Against this backdrop of heightened enforcement, Carroll suggested the move by a U.K. gang to create its own coin is telling. “Developing a meme coin is one step further,” he stated, noting it might be perceived as easier than navigating disrupted networks. “Why invest in the coin when they can just start one themselves?”
Is Gang-Created Coin the Future of Crypto Money Laundering?
He believes this method could become more common, fueled by the desire for quick returns. “Criminals, especially drug dealers, aren’t known for their patience,” he observed. While the NCA has had successes disrupting established crypto money laundering rings, Carroll anticipates specific cases involving gang-created coins like this one appearing in UK courts within the next couple of years. It represents, he concluded, an attempt by criminals to find new ways to “semi-legitimize their trade” in the digital age, potentially in response to increased pressure on older methods.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
