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Money Tunnels: Billions of Dollars in Digital Currencies Transferred to Terrorist Activity - Walla! money

2023-12-10T05:17:27.554Z

Highlights: Over the past three years, digital wallets linked to terrorist activity have transferred billions of dollars. Monitoring and freezing of these acute assets for the purpose of fighting terrorism is crucial. 75% of Iranian funds transferred to major exchanges are transferred through the TRON network. Tron is considered the preferred network for terrorist organizations because it is relatively anonymous. It is a perfect platform for concealing terrorist activities and money laundering. The National Counterterrorism Bureau is currently operating successfully in a number of financial arenas, including the digital currency arena.


Over the past three years, digital wallets linked to terrorist activity have transferred billions of dollars. Monitoring and freezing of these acute assets for the purpose of fighting terrorism


In the video: Kfir Brigade activity to thwart tunnels in the Gaza Strip/IDF Spokesperson

Like other terrorist groups, Sinwar and Hamas are working to circumvent Western sanctions/Reuters

The State of Israel is in one of the most difficult periods it has ever known, when social solidarity merges with the courage of the soldiers, who are now in battle. However, war in the modern era does not begin and end on the battlefield, and the state plays an important role in defense even in the digital field that is hidden from view.

Iran, Hezbollah, Hamas, and other terrorist organizations regularly work to circumvent Western sanctions, including through drug trafficking, money laundering, and the transfer of suitcases of cash. In recent years, there has been an increase in the financing of terrorism through digital currencies as well. While governments around the world have so far focused mainly on freezing bank accounts linked to terrorism, it is understood that today the struggle must be expanded to the digital arena as well.

While digital currencies have obvious advantages, there are those who abuse them. Financing terrorism through digital currencies is a worldwide problem, but in light of the war currently taking place in Israel, the problem has become acute and requires a rapid, ongoing and ongoing struggle to monitor and freeze digital wallets suspected of financing terrorism, at the same time that the war is taking place.

A recent analysis by Xplorisk found that billions of dollars have been transferred to digital wallets linked to terrorist activity over the past 3 years, with restrictions placed on only 2% of wallets, while the rest are still active – even after the attack on Israel on October 7.

Iranians' preferred currency - Tron/ShutterStock

Nearly 14% of Iranians own digital assets, with trading volumes on Iranian stock exchanges exceeding $200 million a day. It is a perfect platform for concealing terrorist activities and money laundering.

The disclosure of the links between the wallets also comes as the US Department of Justice investigates possible violations of money laundering and terror financing by several cryptocurrency exchanges, which have allowed billions of dollars in financing of Iranian activity since 2018, despite US sanctions aimed at isolating Iran from the global economy.

About 75% of Iranian funds transferred to major exchanges are transferred through the TRON network, which is currently considered the preferred blockchain network for terrorist organizations because it is relatively anonymous, in contrast to the prevailing paradigm, according to which Bitcoin is the preferred money pipeline.

Snir Levy/PR

The National Counterterrorism Bureau is currently operating successfully in a number of financial arenas, including the digital currency arena. However, due to the war currently taking place, it is important to increase technological and intelligence cooperation between the public and private sectors. In order to work to win the war, we must fight together every digital wallet that finances terrorism and every suspicious transfer that is made, as if it were the elimination of a terrorist squad.

The author is Snir Levy, founder and CTO of Xplorisk, a portfolio company of Finsec Innovation Lab, Mastercard Innovation Lab and EnelX.

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Source: walla

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