Fashionable meme cryptocurrency Dogecoin (DOGE) has more and more turn into related to a number of illicit actions corresponding to terrorism financing, Ponzi schemes, and youngster intercourse abuse, in accordance with a new report by Elliptic.
The blockchain analytics firm revealed in its report that the meme coin popularized by Elon Musk had turn into a preferred alternative for dangerous actors to facilitate transactions within the tens of millions.
Whereas the overwhelming majority of this exercise consists of fraud, scams and Ponzi schemes, it additionally contains probably the most severe forms of crime, together with terrorism financing and distributors of kid sexual abuse materials (CSAM).
In July 2021, Israel’s Nationwide Bureau for Counter Terror Financing issued a seizure order towards 84 crypto addresses believed to be related to the Hamas group. A type of wallets contained $40,235 in Dogecoin.
Moreover, the analytics firm additionally found {that a} small however rising variety of CSAM distributors on the darknet and outdoors now obtain Bitcoin. Elliptics solely recognized $3000 in Dogecoin, which is a small quantity.
Nevertheless it warned that this might signify a rising “urge for food for legal actors to undertake a variety of crypto belongings to keep away from discover.”
Darknets accepting Dogecoin
A number of darknet markets and malware campaigns additionally settle for Dogecoin. Elliptics recognized darknet companies corresponding to Simply-Kill that also settle for Dogecoin whereas others now not settle for it.
Apart from terrorists, far rights extremist teams additionally seem to have taken a liking for cryptocurrencies, together with Dogecoin. These teams, far-rights weblog websites, information, and video sharing platforms, use Dogecoin to lift funds once they can’t use conventional strategies.
Infowars is one such web site. The far-right globalism-battling information web site has raised over $1,700 in Dogecoin.
This discovery is much like the revelations of the Monetary Motion Activity Power final yr about far-rights teams utilizing cryptocurrencies corresponding to Bitcoin and privateness cash.
Nevertheless, Ponzi schemes, theft, and fraud look like the largest illicit use of Dogecoin. Elliptics declare to have recognized over 50 instances the place criminals cashed out tens of millions of {dollars} in Dogecoin.
Fashionable situations embody the alleged theft of $119 million in Dogecoin related to a Turkish Ponzi scheme final yr. In 2020, the Chinese language authorities additionally seized greater than $20 million DOGE within the $6 billion PlusToken Ponzi scheme.
