UK Street Gangs Are Laundering Drug Money Through OneCoin-Style Memecoins, Expert Warns

In a disturbing revelation that underscores the dark side of crypto’s ease-of-use, a UK-based street gang is allegedly paying individuals to create fraudulent OneCoin-style memecoins to launder their illicit earnings from drugs, fraud, and extortion. According to a report by The Daily Mail, the operation involves “mid-level” gang members funding meme token launches with hundreds of thousands of pounds—cash generated through illegal activities.

The exposé comes from Gary Carroll, a seasoned expert witness in drug-related crimes, who described the scheme as a new-age laundering method. While he refrained from disclosing the name of the memecoin due to concerns for his sources’ safety, he emphasized that the gang in question is “not a household name” but possesses international reach. In addition to crypto laundering, the gang is also tied to the distribution of counterfeit goods and illegal cigarettes.

While the specific token remains unnamed, The Mail hinted that it bears an eerie resemblance to OneCoin—a notorious crypto pyramid scheme that defrauded investors of billions and led to an international manhunt. “In one or maybe two years’ time, there will be cases in court, I’m confident about that,” said Carroll. “It’s becoming a common method for gangs to semi-legitimize their trade.”

What makes this type of scheme particularly dangerous is how simple it is to execute. Platforms like Pump.fun—currently dominating the memecoin space—allow almost anyone to launch a token in minutes, with little oversight. Though Pump.fun has exploded in popularity, it’s now facing legal trouble itself. A lawsuit filed by Burwick Law accuses the platform of acting as a conduit for criminal financing, including terrorism and drug trafficking.

Pump.fun is also dealing with a surge in “memecoin sniping”—a form of automated front-running—raising additional questions about its operational integrity and security. Despite these controversies, the platform continues to facilitate most of the current meme market’s activity.

With criminal entities turning to crypto for both profit and laundering, authorities are beginning to pay closer attention. Carroll predicts that courts will start seeing more cases involving memecoins as criminal evidence in the coming years.

The rise of memecoins was once viewed as a quirky trend among retail investors and crypto enthusiasts. But now, with allegations of fraud, money laundering, and even terrorism financing surfacing, it’s clear the stakes are much higher.