Money Tunnels: Billions of dollars in Digital Currencies Funneled into Terrorist Groups

i-aml Money Tunnels Billions of dollars in Digital Currencies Funneled into Terrorist Groups

Dollar luggage – out, digital currencies – no. The financing of terrorism through crypto is a worldwide problem, every wallet and every suspicious transfer must be fought as if it were the elimination of a terrorist cell

Like other terrorist organizations, Sinwar and Hamas also work to circumvent Western sanctions/Reuters

The State of Israel is in one of the most difficult times it has 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 has an important role in defense also in the hidden digital field.

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


BANNER Terror Finan Invest i-AML


While digital currencies have clear advantages, there are those who abuse them. The financing of 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 quick, ongoing and continuous fight, with the aim of monitoring and freezing digital wallets suspected of financing terrorism, while the war is taking place.

From a recent analysis conducted by the Xplorisk company, it was found that billions of dollars were transferred in digital wallets related to terrorist activity during the last 3 years, when restrictions were imposed on only 2% of the wallets, while the rest are still active – even after the attack on Israel on October 7.

Close to 14% of citizens in Iran own digital assets, with trading volumes on Iranian stock exchanges exceeding $200 million per day. This is a perfect platform for hiding terrorist activities and money laundering.

The disclosure of the connections between the wallets also comes at a time when the US Department of Justice is investigating possible violations of money laundering and terrorist financing by a number of digital currency trading exchanges, which have enabled the financing of Iranian activity in the billions of dollars since 2018, despite the US sanctions aimed at isolating Iran from the global economy.

About 75% of the Iranian funds that are transferred to the major exchanges are transferred through the Tron network, which is considered the blockchain network currently preferred by terrorist organizations due to its relative anonymity, which is different from the usual paradigm, according to which Bitcoin is the preferred money conduit.

The National Headquarters for Economic Warfare against Terrorism (the National Headquarters for Economic Warfare against Terrorism) is currently operating successfully in several financial arenas, including the arena of digital currencies. At the same time, due to the war currently taking place, it is important to increase the 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 cell.


December 12, 2023 Published by The Walla Finance News of Israel.

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