A drug gang in the UK has created its own cryptocurrency, marking what experts believe is the country’s first known case of criminals launching a digital token to launder illicit profits.
While illicit gangs mostly rely on crypto mixers to launder money using Bitcoin or Ethereum, this particular gang created its own meme coin. They hoped it would go viral on social media and quickly spike in value.
Meme Coins and Money Laundering – A New Trend for Criminals?
According to MailOnline, experts have identified this case as the first time a British street gang has launched a real meme coin as a laundering method.
The gang operates at a mid-level and makes money through extortion, fraud, drug trafficking, and selling counterfeit goods and smuggled cigarettes. The report does not disclose the name of the coin or the gang behind it.
Gary Carroll, a drug crime expert at Claymore Advisory Group, said criminals have used cryptocurrencies to launder money for at least 15 years. Now, with meme coins, they’ve found an even easier way to do it.
Illustration of How Criminals Launder Money Using Meme Coins. Source: MailOnline
Carroll explained that the gang plans to inflate the coin’s value through online hype campaigns. Once the price rises, they will dump the coin and cash out. They aim to disguise the proceeds as legitimate income from cryptocurrency ventures, not drug 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 emphasized.
Are Launchpads Amplifying Crypto Crime?
Although this might be the first recorded incident of gangs turning to meme coins, given the current state of the ecosystem, it’s likely to become a trend. Launchpads have made it extremely easy to launch a meme coin and shill it on social media.
This year alone, the market has lost billions in meme coin scams, pump-and-dump schemes, and rug pulls. Thus, it naturally attracts illicit actors and gangs and provides a more convenient channel for them to launder money.
“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.
According to a report published by Merkle Science in February 2025, scams and rug pulls involving meme coins caused more than $500 million in losses worldwide in 2024.
Of those incidents, 75% were carried out via X (formerly Twitter), and 19% on YouTube. Psychological manipulation tactics (social engineering) accounted for 44% of all scam techniques.
Merkle Science also noted that most rug pulls happened on the Solana blockchain, where tools like pump.fun made it significantly easier to launch and promote meme coins.
