Extremist organizations get funding through Bitcoin and other cryptocurrencies

Experts heard by the US Congressional Finance Commission claim that Bitcoin and other cryptocurrencies are used to fund extremists and terrorists on American soil. The topic of the hearing was how extremist organizations obtain funding.

Three of the five witnesses heard that Bitcoin is used to financially support these organizations. Jared Maples, the director of the New Jersey office of Homeland Security, and George Selim, the director of the Anti-Defamation League (ADL), gave some concrete examples.

In 2017, just after the attack in Charlottesville, Virginia, $ 60,000 in Bitcoin was donated to Daily Stormer publisher Andrew Anglin. The Daily Stormer is a right-wing extremist forum. Selim noted that Stormfront, the oldest and largest neo-Nazi site, received about $ 30,000 in Bitcoin before October 2017. Andrew “weev” Auernheimer, another representative of the neo-Nazi movement, received nearly $ 1 million. in Bitcoin.

Rena Miller, a financial economics specialist at the Congressional Research Service, pointed out that combating the financing of extremist groups in the U.S. presents some new challenges due to the emergence of new online fundraising methods.

Extremist organizations obtain cryptocurrency financing

The ADL study highlighted the role of social-media networks and cryptocurrencies in financing American extremist organizations. Miller suggested that the US government should expand its efforts to collect and analyze financial data. In his view, the authorities should have more access to the data provided on social networks and payment processors.

Selim noted, however, that some crypto companies such as Coinbase apply “anti-hate” policies that prevent customers from transferring funds to extremist organizations. Twitter also has a Neonazi BTC Tracker. This is a bot that posts information about Bitcoin wallets identified as funders of extremist organizations.

Selim suggested that the US should create a legal framework to allow crypto platforms to track online transactions and prevent the potential of exploiting their services.

Maples also said that:

“We cannot ignore the possible use of cryptocurrencies as a means of financing acts of internal extremism in the United States. We need to establish strict surveillance. ”