Blockchain intelligence agency Chainalysis has dismissed claims ISIS is holding a $300 million bitcoin (BTC) struggle chest.
In a “fact-checking” report, printed on Could 20, 2020, the U.S. firm accused the media of sensationalizing allegations about BTC and different cryptocurrencies getting used to fund terror teams.
Most terrorism financing campaigns have raised lower than $10,000 through crypto, indicating restricted adoption, mentioned the report.
Just a few days in the past, the director of the Counter Extremism Venture claimed that ISIS had as much as $300 million saved in bitcoin. Funds of equal value have been lacking in a search carried out since 2017.
“This would be an ideal storage mechanism until it is needed. If done right, it would be unfindable and unseizable for most governments,” mentioned Hans-Jakob Schindler, who heads the terrorism-related assume tank.
Main information media printed Schindler’s speculative allegations, even with out laborious proof to again up his claims.
“Schindler’s theory is also highly unlikely,” Chainalysis asserted. The corporate defined that if the terrorist group “funneled oil proceeds into bitcoin, trading volume of regional exchanges and money service businesses would have reflected this flow of funds.”
It highlighted that cryptocurrency just isn’t a great type of storing illicit cash due to the transparency related to the underlying blockchain know-how. Money and different conventional property are higher fitted to this objective, Chainalysis added.
Chainalysis additionally spoke concerning the studies of terrorism fundraising marketing campaign run by Well-liked Resistance Committees (PRC) via Cash4ps, a Gaza-based cash service enterprise, to boost $24 million via crypto, calling it “misinformation.”
Investigations revealed that “if PRC raised any money at all, it was substantially less than $24M.”
One other crypto crime report launched earlier this 12 months talked about using BTC funds to facilitate the bombings in Sri Lanka on Easter Sunday, carried out by ISIS. An Israeli blockchain firm referred to as Whitsream introduced the findings.
Nonetheless, in response to the fact-checking report, “media reports amplified the (Israeli) firm’s findings.”
“The firm…claimed that the balances in Coin Payments’ wallets surged from $500,000 to $4.5 million just one day before the Easter attacks but dropped back to $500,000 right after the attacks took place,” mentioned Chainalysis.
“However, our analysis suggests those findings are likely incorrect and that both the $10,000 transaction and $4 million balance increase were simply internal transactions that are standard practice for a payment processor like Coin Payments,” it added.
Chainalysis noticed that “terrorism financing is generally nascent but capabilities are advancing quickly.”
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