UN Report Reveals How Terror Groups Use Cryptocurrencies for Fundraising and Operations

• ISIL has shifted from traditional payments to digital currencies like Monero, leveraging crypto’s secrecy to finance operations.
• ISIL embeds QR codes in propaganda e-magazines, linking to crypto wallets for donations, according to a UN report.
• Crypto channels on Telegram like CryptoHalal and Umma Crypto, adhering to sharia, are used by ISIL for fundraising.

A recent study by the UN Security Council describes the increasing ways in which terrorist groups are raising and transferring money through cryptocurrency. The research demonstrates the shift that ISIL made in its payment systems, from traditional ones like hawala to virtual ones like Monero. As a result, by taking advantage of the anonymity that cryptocurrencies provide, these terror groups are raising money for their operations.

Innovative Fundraising Methods

Besides this alarming development, the report also notes that ISIL and other related groups are embedding QR codes in propaganda e-magazines to solicit donations. These QR codes link directly to cryptocurrency wallets. 

The UN Security Council’s Monitoring Team has identified two specialized crypto channels on Telegram, named CryptoHalal and Umma Crypto, used for accepting donations. Both channels adhere to a “halal parameter,” promoting the use of cryptocurrencies sanctioned by a preliminary sharia assessment.

The report’s conclusions should cause alarm everywhere, especially in the US, UK, Europe, and India. Terrorist groups’ increasing usage of cryptocurrency may give rise to demands for tighter regulation of the industry. To find the flow of money linked to terrorism, governments might need to step up their monitoring.

The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has sent out a warning. Financial institutions were warned to monitor Bitcoin transactions as they seemed to be associated with the terrorist organization Hamas. Terrorist groups are increasingly using digital currency, which highlights the necessity for tighter control and regulation of the bitcoin market.

Tech Influence and Political Endorsements

However, this development is not isolated to terrorism only. Political contenders are receiving public endorsements from well-known individuals, which further complicates the subject. Tech titans like Peter Thiel and Elon Musk have publicly endorsed Donald Trump. This endorsement carries a lot of weight, especially in light of their wealth and prominence.

Furthermore, other notable figures, including David Sacks and Doug Leone, have also expressed support for Trump. These endorsements come alongside financial contributions to the America PAC, a pro-Trump political action committee. The convergence of tech influence and political support demonstrates the intricate relationships within these sectors.