A UK-based drug gang has created its own cryptocurrency, albeit a “meme coin”, created not to gain instant fame but to launder their ill-gotten gains, according to an independent investigation. The gang, based in the UK, invested some of their drug proceeds in launching Mimecoin and then tried to leverage the classic “pump and dump” trick to make serious money.
According to a report published in the Daily Mail, Gary Carroll, a private investigator specialising in drug crimes with a police background, discovered this particular gang and their Mimecoin in his investigation. Explaining the modus operandi of the gang, Carroll said that the gang hired developers to make Mimecoin similar to OneCoin – a fake cryptocurrency launched in Germany that turned out to be a huge Ponzi scheme.
Carroll has decided not to reveal the identity of the gang or Mimecoin, claiming that it is an ongoing criminal activity. He further added that the gang’s plan is not about the coin’s technology. Instead, the gang uses it for a scam called “pump and dump” to launder their illegal money.
The gang’s goal was to become popular online through social media hype. The gang targeted people to buy their coin, believing it could become a big hit like Dogecoin. The gang also focused on the fact that if the price of the coin increased even slightly due to this buzz, the gang would quickly sell all their coins.
According to reports, this big sale would cause the coin’s value to drop. Other buyers would be left with worthless tokens. But the gang would run away with clean money that looks legitimate, hiding its illegal origin. Even a small price increase could result in a big profit for them.
Carroll claimed that this trick called “pump and dump” is not new, but using his meme coin for it is a bold new way to launder money through crypto.
Usually, criminals use well-known cryptocurrencies like Bitcoin to transfer illegal money. But lately, it has become harder for them. In 2024, the UK National Crime Agency (NCA) cracked down on large crypto money laundering networks, such as Moscow-based Smart and TGR.
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