Evidence of crypto usage by ISIS is ‘mounting’: TRM Labs

Blockchain intelligence platform TRM Labs recently released a report that presents several case studies highlighting the use of cryptocurrency by ISIS affiliates across Asia. The report links on-chain connections between these groups and pro-ISIS fundraising campaigns in Syria.

Through blockchain tracing, TRM Labs identified the flow of funds and notified the exchange used by the group for cashing out their funds. The exchange then alerted local authorities, resulting in Turkish authorities arresting a senior ISIS fundraiser. 

Additionally, the report noted a significant number of individuals using Indonesian-based exchanges to send funds to addresses associated with pro-ISIS fundraising campaigns in Syria. It stated:

“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.”

It was reported that the fundraising campaigns declared the funds were being used to support and “help free ISIS families held in Syrian camps.”  

All transfers were made using USDT on Tron in increments of $10,000, TRM wrote. 

It was further reported that a media unit linked to ISIS’s affiliate in Pakistan (ISPP) began promoting its ability to accept donations in the second half of 2022.

TRM Labs identified that the addresses controlled by the group had a total volume of approximately $40,000 over the last twelve months.

This comes after TRM Labs revealed in a June 28 report that illicit finance volume involving Bitcoin had fallen significantly over the past seven years. It noted that while Bitcoin was once the “exclusive currency” for terrorist financing in previous years, by 2022 it had all changed.

TRM Labs reported that by 2022, Tron was used for 92% of terrorist financing. 

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