Blockchain intelligence platform TRM Labs recently released a report showcasing several case studies highlighting the use of cryptocurrencies by ISIS affiliates across Asia. The report links connections down the chain between these groups and pro-ISIS fundraising campaigns in Syria.
published On July 21, the report notes that there is “mounting evidence” from the past 12 months that pro-ISIS networks in Tajikistan, Indonesia, and Afghanistan have used cryptocurrency to help facilitate operations.
According to the report, the majority of state-related transactions involved the use of Tether (USDT) on the Tron (TRX) network.
On July 21, Cointelegraph covered a presentation by Tara Anison, former head of cryptocurrency technical advisory at Elliptic, where she also confirmed that TRON and Tether were popular assets for illicit use, as criminals were turning away from bitcoin in favor of stablecoins.
The report cited a case in Tajikistan where cryptocurrency was used to recruit fighters for ISIS in Afghanistan. Specifically, the fundraiser, which has been running for over a year, is linked to a headline that received “nearly $2 million in USDT” on Tron in 2022.
Related: Debunking the myth: Cryptocurrency is used for criminal activity
By tracking the blockchain, TRM Labs identified the flow of funds and informed the exchange that the group used to withdraw its funds. The exchange then alerted the local authorities, which led to the Turkish authorities arresting a major fundraiser for ISIS.
In addition, the report indicated that a large number of individuals are using the Indonesian exchange to send money to addresses associated with pro-ISIS fundraising campaigns in Syria.
“More than $517,000 in 2022 was sent by individuals using an Indonesia-based exchange to addresses identified by TRM Labs as belonging to pro-ISIS fundraising campaigns in Syria and local exchanges facilitating their activities.”
A media unit linked to the Islamic State’s branch in Pakistan (ISPP) has also reportedly begun touting its ability to accept donations in the second half of 2022.
TRM Labs determined that titles controlled by the group totaled about $40,000 in volume over the past 12 months.
The Journal: US law enforcement agencies are ramping up cryptocurrency-related crime
