activities Money laundering related to the cryptocurrency market and the use of NFTs It has seen an exponential increase over the past 15 years as a result of technological developments and economic hardships, such as the crisis of 2008 and the pandemic of 2020. Since 2017, more than $8 million in illicit money has been laundered through a non-fungible NFT token, at par to 0.02 % of trading activity from known sources. NFT thefts worth over $100 million were publicly reported between July 2021 and July 2022, averaging $300,000 per scam. Despite numerous checks by NFT markets to prevent such activities, the Regulatory loopholes hey Levels of security and anonymity included in these technologies Highly incentivized to use for illegal purposes.
Is the Islamic State funded by NFTs?
Last month, former US intelligence officials said that A NFTs It was created and published by a terrorist sympathizer who photos and glorifies the recent attack by Islamic militants on a Taliban position in Afghanistan. It also appears The emblem of the Islamic State. The NFT in question is the first known example of NFT technology being used for activities that may be directly or indirectly related to terrorism. The digital code was discovered by Rafael Gluck, co-founder of the US research firm Jihadoscope, among pro-ISIS social media accounts. NFT is named IS-NEWS #01.
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According to Mario Cosby, a former federal intelligence analyst specializing in blockchain currencies, a user created two NFTs during the same month. The first NFT features an ISIS fighter training students to design explosive devices, while the other condemns cigarette smoking. It would have been non-fungible tokens Listed on the OpenSea digital token market. However, the company soon took it down and banned the poster’s account. The trio of NFTs would also have been present on the Rarible NFT Market and many others before being phased out completely, though None of the NFTs appear to have been commercialized.
US security alert
US security experts have highlighted their concerns about the growing potential for an exploit blockchain technologies and emerging markets, including NFTs, to fund terrorist groups. in february, The US Treasury released a study who stands out The growth of the NFT market as a potential area of national security concern, both for illegal activities related to terrorism and activities related to enemy countries. The Stady, called “A Study on Facilitating Money Laundering and Terrorist Financing through Art Trade,” effectively presented the scope of the “emerging digital art market” by focusing on government-level NFTs (non-fungible token) from the point of view of money laundering and terrorism. financing.
Isis funds itself through NFTs, but shouting at the scam is silly: Here’s why
Last March, Israel alleged that 12 accounts on the Al Mutahidoon cryptocurrency exchange were being used by Hamas leader for Financing terrorist acts against the nation. Thirty cryptocurrency wallets were seized from 12 exchange accounts linked to Hamas, the armed group based in the Gaza Strip. The wallet was seized with the help of the Israeli National Bureau for Countering the Financing of Terrorism (NBCTF). Hamas has been accepting cryptocurrency donations since 2019, when economic sanctions began severely curtailing its ability to fund its hostile activities against Israel. Additionally, the NBCTF seized Hamas crypto funds in July 2021 that were allegedly used by the Al-Qassam Brigades, part of the Hamas military, according to Matta. Confirmed by cryptocurrency tracking company CypherTrace. Additionally, last May CipherTrace reported on donations made to the Syrian terrorist organization Brotherhood, which were eventually sent to Al Qaeda, following information gathered by a group of independent journalists. MagniF! le And their investigations into the Telegram channels of Syrian terrorist groups.
however, A recent report from Elliptic titled “NFTs and Financial Crime”highlighted that although organizations such as Al Qaeda, ISIS, and Hamas have engaged in cryptocurrency-based financing, these organizations mostly operate in areas where there is a lack of internet access, ATM services, and vendors that accept cryptocurrency. Thus, the risk of cryptocurrency-based terrorist financing spreading to NFTs remains low. Until now organizational gap Inherent in NFTs, both European and international, may increase the risk of high-value NFT transactions that will be used as a vehicle Circumventing anti-money laundering laws currently in effect. Moreover, NFTs are associated with cryptocurrencies that are increasingly being used in organized crime schemes, and the prevalence of these means of payment as part of investment fraud is accelerating.
These donations, based on cryptocurrencies, are by no means limited to financing terrorism, but are also exploited in other areas, such as armed conflicts. In the first two months of 2022, supporters of the Freedom Caravan in Canada and the Ukrainian Resistance Force Against Russia raised millions in cryptocurrency donations. In addition, there have been isolated cases of pro-Russian separatist forces in eastern Ukraine They exploited NFTs to raise funds for their military activities. Due to the Russian government’s restrictions on crypto assets, these projects have not been as prolific as the Ukrainian government’s crypto fundraising campaigns.
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