Evidence of crypto usage by ISIS is mounting — TRM Labs

Blockchain intelligence platform TRM Labs recently released a report highlighting the intensifying use of cryptocurrency by the Islamic State of Iraq and Syria (ISIS) affiliates throughout Asia. It linked significant on-chain connections between these groups and pro-ISIS fundraising projects in Syria.Published on July 21, the report indicated that there is “mounting on-chain evidence” from the past twelve months that pro-ISIS networks in Tajikistan, Indonesia and Afghanistan have utilized cryptocurrency to help facilitate operations. According to TRM, a majority of deals related to the cases included making use of Tether (USDT) on the Tron network.Extract from the TRM report. Source: TRM LabsOn July 21, Cointelegraph covered a discussion by Tara Annison, Elliptics previous head of technical crypto advisory, where she also emphasized that Tron and Tether were popular assets for illicit use. She kept in mind criminals were shifting away from Bitcoin (BTC) in favor of stablecoins. Annison discussed that decentralized exchanges (DEXs) have deep liquidity and “truly great volume,” making it “very easy” to wash funds.A considerable number of individuals using Indonesian-based exchanges to send out funds to addresses related to pro-ISIS fundraising campaigns in Syria were likewise highlighted in the report. It mentioned:” Over USD 517,000 was sent in 2022 by people utilizing an Indonesia-based exchange to addresses recognized by TRM Labs as belonging to pro-ISIS fundraising projects in Syria and the regional exchanges that facilitate their activities.” TRM discussed that the fundraising campaigns declared the funds were being used to support and “help free ISIS households held in Syrian camps.” All transfers were made using USDT on the Tron network in increments of $10,000, TRM wrote. The report keeps in mind an instance in Tajikistan where crypto was utilized to recruit fighters for ISISs affiliate in Afghanistan. Among the fundraising campaigns, which was operational for more than a year, was connected to an address that received approximately $2 million in USDT on Tron in 2022. Through blockchain tracing, TRM Labs identified the circulation of funds and alerted the exchange used by the group for cashing out their funds. The exchange then informed regional authorities, leading to Turkish authorities detaining a senior ISIS fundraiser, Shamil Hukumatov, on June 22. Related: Debunking the myth: Cryptocurrency is used for criminal activityIt was even more reported that a media unit connected to ISISs affiliate in Pakistan began promoting its ability to accept donations in the 2nd half of 2022. TRM Labs identified that the addresses managed by the group had an overall volume of approximately $40,000 over the last twelve months.This comes after TRM Labs exposed in a June 28 report that illicit finance volume involving Bitcoin had actually fallen considerably over the past 7 years. It noted that while Bitcoin was when the “special currency” for terrorist financing, by 2022, Tron was utilized for 92% of terrorist financing.Magazine: US enforcement agencies are showing up the heat on crypto-related criminal activity

Blockchain intelligence platform TRM Labs just recently released a report highlighting the intensifying use of cryptocurrency by the Islamic State of Iraq and Syria (ISIS) affiliates across Asia. According to TRM, a bulk of deals linked with the cases included the use of Tether (USDT) on the Tron network.Extract from the TRM report. It mentioned:” Over USD 517,000 was sent out in 2022 by people utilizing an Indonesia-based exchange to addresses recognized by TRM Labs as belonging to pro-ISIS fundraising campaigns in Syria and the local exchanges that facilitate their activities.

Other Questions People Ask

What evidence of crypto usage by ISIS is mounting according to TRM Labs?

TRM Labs has reported significant on-chain evidence indicating that ISIS affiliates in regions like Tajikistan, Indonesia, and Afghanistan are increasingly utilizing cryptocurrency for their operations. The report highlights that over USD 517,000 was sent in 2022 from an Indonesia-based exchange to addresses linked to pro-ISIS fundraising campaigns in Syria. Additionally, the use of Tether (USDT) on the Tron network has been particularly prevalent in these transactions, marking a shift from traditional cryptocurrencies like Bitcoin.

How is TRM Labs tracking the crypto usage by ISIS?

TRM Labs employs blockchain tracing techniques to monitor and analyze cryptocurrency transactions associated with ISIS affiliates. By identifying specific addresses and tracking fund flows, they have uncovered substantial amounts of money being funneled into pro-ISIS fundraising efforts. Their analysis revealed that one address received approximately $2 million in USDT on Tron in 2022, leading to interventions by law enforcement agencies.

What role does Tether play in the evidence of crypto usage by ISIS?

Tether (USDT) has emerged as a primary cryptocurrency used by ISIS affiliates for fundraising and operational activities, as highlighted in TRM Labs' report. The majority of transactions linked to these groups involved USDT on the Tron network, indicating a strategic preference for stablecoins over more volatile cryptocurrencies like Bitcoin. This trend underscores a shift in how terrorist organizations are adapting their financial strategies to exploit the crypto landscape.

What implications does the mounting evidence of crypto usage by ISIS have for law enforcement?

The increasing evidence of cryptocurrency usage by ISIS presents significant challenges and opportunities for law enforcement agencies. As TRM Labs has demonstrated, tracking these transactions can lead to identifying and apprehending key figures involved in terrorist financing. The proactive measures taken by exchanges, such as alerting authorities about suspicious activities, are crucial in disrupting these funding channels and enhancing overall security.

What trends are emerging regarding crypto usage by ISIS according to TRM Labs?

TRM Labs has observed a notable trend where ISIS affiliates are shifting from Bitcoin to stablecoins like Tether for their financial operations. This change is attributed to the liquidity and ease of use provided by decentralized exchanges (DEXs), which facilitate large transactions without drawing significant attention. The report indicates that this shift has resulted in stablecoins being used for 92% of terrorist financing activities, highlighting an evolving landscape in illicit finance.