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Are Terror Groups Using Crypto To Launder Money?

shutterstock 1062008168
shutterstock 1062008168

Not everyone is using crypto for good reasons. Here are five ways terror groups, cartels, and hostile nations are taking advantage of digital currency. 

Online Financing

It makes perfect sense. Terrorist groups and hostile nations want to stay under the radar, making cryptocurrencies appealing. According to the Department of Justice, terror groups like Hamas and Al-Queda have a long history of using Bitcoin and posting links to social media and their websites for Bitcoin donations. They even included instructions on how to make anonymous donations. 

Laundering and Fraud

Crypto allows terror groups and drug cartels to hide their footprints. Groups like Al-Queda and Isis have gotten good at maxing out their credit lines on Bitcoin purchases and then converting their crypto into cash. This makes their transactions virtually untraceable. 

International Funding 

What happens when terror groups or drug cartels don’t have access to global banking? Crypto allows these groups to cash in both within their borders and receives funding from around the world. 

Traveling Across Borders 

It’s no wonder drug cartels have caught on quickly to using digital currencies. A 2020 drug enforcement report outlined how Mexican and Colombian cartels use these currencies to further their international enterprises and transfer international funds across borders. 

Developing their Own Currencies

What could rogue states do best to evade sanctions? They could come up with their own currencies. That’s what China and Iran’s regimes are doing. And the case of Russia, which has been put under heavy international sanctions since invading Ukraine, told their friends to pay for oil using crypto. According to the UN, North Korea has amassed over $2 billion for its weapons of mass destruction program by using sophisticated cyber attacks. The most recent was a crypto heist of over $600 million. 

Should there be a way to prevent terror groups from accessing cryptocurrency? Or will that lead to too much regulation over digital assets? Let us know what you think in the comments below.

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