BTC Wires

Are Cryptocurrencies Helping Fund Terrorist Outfits?

Cryptocurrencies have been around for quite some time now and had seen increased adoption and usage in various sectors. More and more institutional investors have started to take digital assets seriously and are finally investing in them. However, the number of illegal activities, conducted through cryptocurrencies have also sky-rocketed.

As per reports which were revealed on the 21st od May, on the Russian news site RBK the director of Russia’s federal security service, the FSB, has issued a warning that cryptocurrencies were helping in funding terrorist organizations and terror outfits across the worlds.

FSB head Alexander Bortnikov elaborated that global terrorist organizations have been mastering the use of virtual currencies for some time, along with encrypted communication tools that assisted them in evading the security services. He added:

“Electronic payment systems and cryptocurrencies are increasingly being used by terrorists to move money received from some states and organizations that support the global terrorist network.”

Bortnikov also said that these terror groups are also raising funds through the slave trade and by illegally selling oil.

It was in late April that the co-founder of Chainalysis had issued a warning regarding the fact that the crypto industry was beginning to see the beginnings of terrorism financing. Jonathan Levin had added that bitcoin (BTC) was “by far the favourite” for hackers and criminals, as it was used in at least 95% of the incidents investigated by law enforcement.

Recent years have also seen crypto used to evade economic sanctions. In March, a U.N. Security Council report revealed that North Korea has managed to amass $670 million in fiat and cryptocurrencies through hacking attacks.