BRICS Tether

TRM Labs: Evidence Mounts on ISIS’ Crypto Usage

Cryptocurrency has been increasingly used by ISIS affiliates across Asia, according to a report released by blockchain intelligence platform TRM Labs. The report highlighted several case studies that demonstrated the on-chain connections between these groups and pro-ISIS fundraising campaigns in Syria. This evidence, gathered over the past twelve months, revealed the utilization of cryptocurrency by pro-ISIS networks in Tajikistan, Indonesia, and Afghanistan to facilitate their operations. The majority of transactions involved the use of Tether (USDT) on the Tron network (TRX).

The report presented a particular instance in Tajikistan where crypto was employed for recruiting fighters for ISIS’s affiliate in Afghanistan. A fundraising campaign, operational for more than a year, was linked to an address that received approximately $2 million in USDT on Tron in 2022. TRM Labs analyzed the flow of funds through blockchain tracing and informed the exchange used by the group to cash out their funds. Consequently, the exchange alerted local authorities, leading to the arrest of a senior ISIS fundraiser by Turkish authorities.

Additionally, the report highlighted the significant number of individuals using Indonesian-based exchanges to send funds to addresses associated with pro-ISIS fundraising campaigns in Syria. An amount exceeding $517,000 was sent in 2022 by individuals via an Indonesia-based exchange to addresses identified by TRM Labs as belonging to pro-ISIS campaigns. The report also mentioned a media unit affiliated with ISIS in Pakistan, which began promoting its ability to accept donations during the second half of 2022. The addresses controlled by this group had a total volume of approximately $40,000 over the past year.

This report aligns with recent observations made by Tara Annison, Elliptic’s former head of technical crypto advisory. Annison highlighted TRON and Tether as popular assets for illicit use, as criminals are shifting away from Bitcoin in favor of stablecoins. While these findings raise concerns about the misuse of cryptocurrency, experts emphasize that the technology itself is neutral and can be used for both legal and illegal purposes.

Efforts to combat the illicit use of cryptocurrency have become increasingly important in recent years. The ability to trace transactions and identify suspicious activities through blockchain analysis has proven to be a valuable tool in the fight against criminal organizations. By working closely with exchanges and authorities, blockchain intelligence platforms like TRM Labs play a crucial role in monitoring and reporting suspicious transactions.

While the use of cryptocurrency by terrorist organizations presents a challenge, it is essential to remember that the vast majority of cryptocurrency transactions are legitimate and contribute to the growth and development of the blockchain industry. Governments and regulatory bodies continue to develop frameworks and regulations to ensure the responsible and lawful use of cryptocurrencies, while also addressing the need for enhanced security measures to prevent misuse.

As the cryptocurrency landscape evolves, it is crucial for industry participants, law enforcement agencies, and regulators to stay vigilant and collaborate to mitigate the risks associated with illicit activities. By promoting transparency and implementing robust compliance measures, the industry can work towards establishing a secure and trusted environment for the exchange of digital assets.

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