ISIS affiliates use Tether on the Tron network to facilitate their operations.
TRM Labs, a leading blockchain intelligence platform, has recently reported an upsurge in the use of cryptocurrency by ISIS (Islamic State of Iraq and Syria) affiliates spread across Asia.
The report, released on July 21st, unravels "mounting on-chain evidence" from the last twelve months that portrays how pro-ISIS sections in Tajikistan, Afghanistan, and Indonesia actively use cryptocurrency to drive their operations.
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Interestingly, TRM's analysis reveals that most transactions linked to these activities largely involve using Tether (USDT) on the Tron network.
A similar viewpoint was echoed by Tara Annison, former head of technical crypto advisory at Elliptic. In her July 21st presentation, she detailed that criminals were gradually transitioning away from Bitcoin (BTC) in favor of cryptocurrencies like Tron (TRX) and Tether (USDT), owing to the easy liquidity and high volume provided by decentralized exchanges (DEXs) that facilitate effortless fund laundering.
TRM's report brings to light the number of users employing Indonesian-based exchanges to remit funds to pro-ISIS fundraising campaigns operating in Syria. As quoted in the report:
Over USD 517,000 was sent in 2022 by individuals using an Indonesia-based exchange to addresses identified by TRM Labs as belonging to pro-ISIS fundraising campaigns in Syria and the local exchanges that facilitate their activities.
These campaigns allegedly assert that the collected funds are used for assisting and "freeing ISIS families detained in Syrian camps."
All the transfers cited in the report were completed using USDT on the Tron network, typically divided into batches of $10,000.
Additionally, the report disclosed a case in Tajikistan where cryptocurrency was employed to recruit soldiers for the ISIS affiliate in Afghanistan. One such fundraising campaign was associated with an address that collected nearly $2 million in USDT in 2022.
The latest report from TRM Labs highlights the rising trend of cryptocurrency usage, especially USDT on the Tron network, by ISIS networks across Asia. This revelation underscores the need for comprehensive surveillance and regulatory mechanisms in the crypto ecosystem to promptly halt its exploitation by extremist factions.
