British law enforcement is sending a powerful message to criminals using the dark web and cryptocurrencies: your digital trail will lead right to your door. Recent prosecutions reveal how police are successfully dismantling sophisticated drug networks by combining traditional detective work with cutting-edge blockchain analysis.
The Blueprint of a Digital Drug Ring
The model for these criminal operations was often the same: use encrypted phones to communicate, sell drugs on hidden dark web marketplaces, and receive payments in cryptocurrency, which were then laundered through digital wallets. For a time, this offered a veil of anonymity. However, a major breakthrough for police came with the takedown of EncroChat, an encrypted communication service widely used by criminals.
This operation provided investigators with a treasure trove of evidence. In one major case, messages from EncroChat revealed that Joe McNally was running a large-scale drug enterprise on the dark web between 2019 and 2021. He directed a operation where drugs were purchased with cryptocurrency, then packaged and distributed worldwide through the Royal Mail in disguised packaging. Similarly, another dealer, Ryan Coleman, operated for six years under the pseudonym “Snowcap”, selling an estimated 80kg of Class A and B drugs in over 18,500 transactions paid for with crypto.
Cracking the Code: How Police Followed the Money
The key to solving these cases was merging old-fashioned police work with new financial forensics. While the EncroChat data provided the “who” and “what”, following the cryptocurrency money trail uncovered the entire financial network.
Unlike fully anonymous cash, cryptocurrency transactions are recorded on a public, permanent ledger called the blockchain. Specialist police units, aided by blockchain intelligence firms, learned to trace these transactions. They analyzed patterns, such as wallets that received many small payments followed by large withdrawals—a classic sign of a merchant account. The ultimate goal was to find the “cash-out” point where crypto was converted into traditional currency on a regulated exchange, which often holds customer identification data obtainable with a legal order.
This methodology proved devastatingly effective. In the case of former National Crime Agency officer Paul Chowles, who himself stole 50 Bitcoin during an investigation, it was blockchain analysis that exposed how he moved the funds through a “mixing” service and spent it with crypto-linked debit cards.
The Reckoning and a Warning
The consequences for these criminals have been severe, extending beyond prison sentences.
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Long Prison Terms: Joe McNally was sentenced to 18 years and six months for his role as the leader of a sophisticated drug operation. Ryan Coleman received a 15-year jail sentence for his large-scale online drug business.
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Asset Seizure: The financial damage is also significant. UK authorities actively use asset seizure powers. Police seized £1.3 million in cryptocurrency from Ryan Coleman, with proceeds funneled back into funding police operations and public services. The Crown Prosecution Service is also pursuing confiscation proceedings against other convicted dealers like McNally to reclaim all criminal profits.
These cases demonstrate that the perceived anonymity of the dark web and cryptocurrency is a fragile shield. As one detective involved in the McNally case put it, “Criminals should not believe that using the dark web will protect them from being identified”. The permanent, traceable nature of the blockchain, combined with determined police work, ensures that digital dealers are increasingly living on borrowed time.
