Cryptocurrency Laundering Scheme: UK-based Gang Launches Meme Coin

In a significant development, the British National Crime Agency (NCA) has disrupted sprawling operations that specialised in swapping drug gangs' cash for cryptocurrency. The operations, uncovered by the NCA, included the Moscow-based Smart and TGR networks.

Dr. Mark Carroll, a cryptocurrency expert at the NCA, suggested that a U.K. gang's move to create its own coin is telling, potentially indicating a shift in crypto money laundering methods. This attempt by criminals to create their own coins, according to Carroll, represents an attempt by criminals to find new ways to "semi-legitimize their trade" in the digital age.

Carroll believes this method could become more common, fueled by the desire for quick returns. He observed that "Criminals, especially drug dealers, aren't known for their patience." This rapid pace was particularly evident during pandemic lockdowns, when these networks became particularly crucial for gangs struggling to move mountains of physical cash.

The Russian-linked services offered a lifeline, taking the risky cash off their hands (for a fee) and providing cryptocurrency in return, sometimes sourced from ransomware attacks. Carroll stated that developing a meme coin is one step further and might be perceived as easier than navigating disrupted networks.

In a notable case, a British streetwear brand, believed to be "The Hundreds," launched its digital currency in 2021. Carroll anticipates specific cases involving gang-created coins like this one appearing in UK courts within the next couple of years.

The NCA's operation led to dozens of arrests in the UK, including couriers caught moving millions, significantly disrupting these established channels for crypto money laundering. Carroll concluded that this attempt by criminals to create their own coins is a testament to their ingenuity and adaptability in the digital age. However, the NCA's relentless pursuit ensures that these illegal activities will not go unchecked.