A drug gang within the UK has created its personal cryptocurrency, marking what consultants consider is the nation’s first identified case of criminals launching a digital token to launder illicit income.
Whereas illicit gangs largely depend on crypto mixers to launder cash utilizing Bitcoin or Ethereum, this explicit gang created its personal meme coin. They hoped it will go viral on social media and rapidly spike in worth.
Meme Cash and Cash Laundering – A New Pattern for Criminals?
In keeping with MailOnline, consultants have recognized this case as the primary time a British avenue gang has launched an actual meme coin as a laundering methodology.
The gang operates at a mid-level and makes cash by way of extortion, fraud, drug trafficking, and promoting counterfeit items and smuggled cigarettes. The report doesn’t disclose the title of the coin or the gang behind it.
Gary Carroll, a drug crime knowledgeable at Claymore Advisory Group, stated criminals have used cryptocurrencies to launder cash for at the very least 15 years. Now, with meme cash, they’ve discovered a good simpler method to do it.
Carroll defined that the gang plans to inflate the coin’s worth by way of on-line hype campaigns. As soon as the value rises, they’ll dump the coin and money out. They intention to disguise the proceeds as professional revenue from cryptocurrency ventures, not drug gross sales.
“Even if the coin only rises by a small amount, they could still make a lot of money before selling out. Those profits will appear to be from crypto entrepreneurship rather than drugs.” He emphasised.
Are Launchpads Amplifying Crypto Crime?
Though this is likely to be the primary recorded incident of gangs turning to meme cash, given the present state of the ecosystem, it’s more likely to change into a pattern. Launchpads have made it extraordinarily simple to launch a meme coin and shill it on social media.
This yr alone, the market has misplaced billions in meme coin scams, pump-and-dump schemes, and rug pulls. Thus, it naturally attracts illicit actors and gangs and supplies a extra handy channel for them to launder cash.
“In one or maybe two years’ time there will be cases in court, I’m confident about that. But there are no examples of this happening in the UK…My own opinion is this will become more common. It’s a way to semi-legitimise their trade,” Carroll predicted.
In keeping with a report printed by Merkle Science in February 2025, scams and rug pulls involving meme cash brought about greater than $500 million in losses worldwide in 2024.
Of these incidents, 75% had been carried out by way of X (previously Twitter), and 19% on YouTube. Psychological manipulation ways (social engineering) accounted for 44% of all rip-off strategies.
Merkle Science additionally famous that the majority rug pulls occurred on the Solana blockchain, the place instruments like pump.enjoyable made it considerably simpler to launch and promote meme cash.
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