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A UK drug gang has innovatively ventured into cryptocurrency by launching a meme coin, marking a significant evolution in crypto-related crime.
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This unprecedented move highlights a broader trend, as experts reveal that meme coins are increasingly being used as tools for money laundering, complicating regulatory efforts.
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Gary Carroll of Claymore Advisory Group underscores, “This method allows gangs to legitimize criminal earnings by riding the speculative wave of meme culture.”
UK gang’s launch of a meme coin represents a new wave in crypto crime, demonstrating how easily illicit profits can be laundered through digital tokens.
Meme Coins and Money Laundering – A New Trend for Criminals?
This new tactic underscores the rapid adaptation of criminal enterprises to utilize cryptocurrency as a means of laundering money. Historically, gangs have relied on traditional methods, but with the advent of cryptocurrencies, particularly meme coins, they can now leverage social media hype to manipulate market dynamics.
The gang in question has diversified its operations beyond traditional crime, integrating digital asset fundraising into their revenue streams. While the specifics of the coin’s name and the gang’s identity remain undisclosed, the transition to creating a meme coin signifies a shift in their laundering methods.
Gary Carroll elaborates on this trend: “The rapid fluctuations in meme coin values present opportunities for illicit actors to employ legitimate facades, masking their illegal activities under the guise of cryptocurrency trading.”
Illustration of How Criminals Launder Money Using Meme Coins. Source: MailOnline
Through strategic online marketing, the gang hopes to inflate the coin’s price dramatically. Carroll points out that even a minor price increase can yield substantial profits before liquidating their holdings, allowing them to present these earnings as gains from lawful crypto business activities rather than narcotics.
Are Launchpads Amplifying Crypto Crime?
The emergence of launchpads has made it alarmingly easy for new projects to gain traction, including those with malicious intent. Experts warn that the reduced barriers to entry are likely to entice criminal organizations looking to exploit meme coins as a laundering mechanism.
The toll of scams in the cryptocurrency space is staggering, with losses easily reaching billions. The rise of pump-and-dump schemes correlates directly with the influx of illicit actors leveraging these schemes to obscure the source of their funds.
“I predict that within the next one to two years, we will see legal ramifications arising from these activities in the UK,” Carroll forecasts confidently. “This can become a normalized method for criminals to semi-legitimize their operations,” he adds.
According to a report from Merkle Science published earlier this year, the prevalence of scams associated with meme coins resulted in over $500 million in losses globally in 2024 alone. A significant portion of these scams were executed via platforms like X (formerly Twitter) and YouTube, indicating where criminals find fertile ground for their schemes.
Notably, over 75% of meme coin scams occurred on X, with social engineering tactics being a prominent method. The influence of this methodology illustrates the contrasting development of digital assets from revolutionary technologies to tools for criminal activity.
Merkle Science further notes that the Solana blockchain has been particularly attractive for criminals due to tools such as pump.fun, which simplify the process of launching and promoting meme coins while minimizing the complexity associated with traditional digital asset exchange mechanisms.
Conclusion
This pioneering use of meme coins by gangs in the UK not only showcases the evolving landscape of cryptocurrency-related crime but also highlights the urgent need for effective regulatory frameworks. As cryptocurrency adoption grows, so too does the potential for its misuse, emphasizing the importance of vigilance in both the regulatory and investment landscapes.
