ISIS turns to crypto for fundraising, says TRM Labs

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Terrorist organizations associated with the ISIS group have raised more than $2 million this year with cryptocurrencies, according to a recent report from TRM Labs.

The blockchain intelligence firm has revealed this in its new report stating that the terrorist group is increasingly using crypto for its fundraising activities.

The Pro-ISIS group raised 2 million in USDT

According to the report, significant on-chain evidence shows that pro-ISIS networks in Tajikistan, Pakistan, Afghanistan and Indonesia use cryptography for their activities. Most of these transactions are in Tether USDT on the Tron network.

This corroborates a recent report by BeInCrypto which indicated that criminals are increasingly favoring stablecoins like USDT for their illicit transactions.

Pro-ISIS groups are using crypto to recruit fighters to join an ISIS affiliate in Afghanistan (ISKP). One such group in Tajikistan received over 2 million USDT in 2022.

Financing Terrorism with Crypto (Source: TRM Labs)

TRM Labs revealed how it tipped off an anonymous exchange to identify the person behind the account and alerted authorities. This led Turkish authorities to arrest Shamil Hukumatov on June 22. Hukumatov is a major Islamic State fundraiser and is believed to be behind the fundraiser.

Other pro-ISIS groups in Indonesia, Afghanistan, and Pakistan have also received crypto assets. These organizations received a total of $567,000 in crypto asset donations in 2022.

Chainalysis says crypto is not crime-friendly

Earlier this month, Chainalysis reported that crypto is not conducive to crime and its use by criminals has dropped 65% this year. The company focused on illicit activities involving ransomware attackers and darknets. He also reported that revenue from crypto scammers has dropped 77% in the current year.

However, the overall decline in crypto crimes has not convinced regulators of its preference for criminals. Kuwait recently banned cryptocurrencies citing their possible use for money laundering and terrorist financing.

Even countries like Belarus and Australia that do not ban digital assets are also introducing measures to limit their use for illicit purposes.

Belarus wants to ban peer-to-peer crypto transactions to curb cybercrime, while Australian banks limit payments to ‘high-risk’ exchanges.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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