A Britain-based drug gang has created its cryptocurrency, albeit a “meme coin,” not for instant fame but to launder their ill-earned money, according to an independent investigation carried out. The gang, based out of UK, had invested some of its drug money to launch a memecoin and then tried to capitalize on the classic “pump and dump” trick to make serious money.
According to a report published in the Dailymail, private investigator Gary Carroll, an expert in drug crimes with a policing background, discovered the particular gang and their memecoin in his investigation.
Explaining the gang’s modus operandi, Carroll said the gang had hired developers to create a memecoin, resembling OneCoin- a fake cryptocurrency launched in Germany that turned out to be a giant Ponzi scheme. Carroll has chosen not to reveal the identity of the gang or the memecoin, claiming it to be ongoing criminal activity.
He further said that the gang’s plan isn’t about the coin’s technology. Instead of it, the gang uses it for a scam called a “pump and dump” to launder their illegal money.
Criminals have been using cryptocurrencies to launder their money for a while now, but this is the first time that a criminal enterprise has created a token to not just launder their money but also attempt to profit from the coin. They are using illicit money to first pay developers to create a memecoin and then have invested the remaining amount in that coin,” explained Carroll to Daily Mail.
The gang aimed to get popular online through the social media hype. The gang targeted people to buy their coin, believing it could become a big hit like Dogecoin. The gang also worked with a focus that if the coin’s price goes up even a little because of this buzz, the gang will quickly sell all their coins.
As per the reports, this big sell-off would make the coin’s value crash. leaving other buyers with worthless tokens. But the gang would walk away with clean money that looks legal, hiding its illegal origins. Even a small price increase could mean big profits for them.
This trick, called a “pump and dump,” isn’t new, but using their meme coin for it is a bold new way to launder money through crypto, claimed Carroll.
Usually, criminals use well-known cryptocurrencies like Bitcoin to move illegal money. But recently, it’s gotten harder for them. In 2024, the UK’s National Crime Agency (NCA) cracked down on big crypto money laundering networks, like ones based in Moscow called Smart and TGR.
Also Read: South Korea Forms Crypto Crime Unit to Tackle Gangs
