Common meme cryptocurrency Dogecoin (DOGE) has more and more turn out to be linked to a number of illicit actions equivalent to terrorism financing, Ponzi schemes, and youngster intercourse abuse, in line with a new report by Elliptic.
The blockchain analytics firm revealed in its report that the meme coin popularized by Elon Musk had turn out to be a preferred selection for dangerous actors to facilitate transactions within the thousands and thousands.
Whereas the overwhelming majority of this exercise consists of fraud, scams and Ponzi schemes, it additionally contains essentially the most severe sorts 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 in opposition to 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 symbolize a rising “urge for food for felony 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 equivalent to Simply-Kill that also settle for Dogecoin whereas others 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 just like the revelations of the Monetary Motion Activity Pressure final yr about far-rights teams utilizing cryptocurrencies equivalent to Bitcoin and privateness cash.
Nonetheless, 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 thousands and thousands of {dollars} in Dogecoin.
Common situations embrace 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.
