“Cryptography does not fit into terror funding”

According to a report released by the Foundation for Defense of Democracies (FDD) and Center for Sanctions and Illicit Finance (CFIF), digital currencies are not suitable for funding terrorist groups.

The report mentions the Jahezona block chain, the first terrorist financing campaign in Gaza in 2016. The campaign was managed by a jihad organization called the Mujahideen Shura Council, financing $ 2,500 per combatant and providing a bit coin pay option. The group is said to have raised $ 500 or more in beat coins.

The distributed nature of digital currencies, which allow users to view anonymous transactions in general, also makes it difficult for terrorists to hide transactions. For example, analyzing a block or chain-chained transaction can identify the exchange in which the transaction took place. It is now known to have laundered money through the lost BTC-e exchange.

Another example is the Syrian armed group Malhama Tactical. Trying to raise money through Twitter. The fund raised by the group was only a bit coin worth $ 100.

Terrorists need to be familiar with cybersecurity to manage large amounts of cryptography, but these technologies are lacking. Price fluctuations and vulnerabilities to hackers are also factors that inhibit the use of cryptography in this area.

For this reason, cryptography is viewed as a negative payment method, but it is not the best tool for terrorists. In areas where basic technology infrastructure is lacking, purchasing cash items is rather anonymous and using cash for purchases is more advantageous. For more information, please click here .