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The Dark Side of Bitcoin: How ISIS, Jihadists Are Ramping Up Cryptocurrency Investments

<p class&equals;"MsoNormal" style&equals;"text-align&colon; left&semi;" align&equals;"center">Terrorist groups&comma; like ISIS&comma; are using untraceable cryptocurrencies and now hold &ldquo&semi;a prominent presence online&comma;&rdquo&semi; according to <em style&equals;"mso-bidi-font-style&colon; normal&semi;">The Jerusalem Post&period;<&sol;em>&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">These groups are encouraging Bitcoin donations for fund-raising efforts&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;There is currently no shelter to protect the food and ammunition from the rain&comma;&rdquo&semi; the group&comma; called al Sadaqah &lpar;&ldquo&semi;charity&rdquo&semi; in Arabic&rpar;&comma; lamented in a post on the messaging app Telegram&period; The group&rsquo&semi;s Twitter feed contains a video showing a dirt floor strewn with blankets&comma; bags of pita bread and hand grenades along with a message&mdash&semi;&ldquo&semi;Donate anonymously with Cryptocurrency&rdquo&semi;&mdash&semi;followed by a bitcoin address&period; So far&comma; according to an online ledger&comma; the group has received about &dollar;1&comma;000&comma;&rdquo&semi; writes the <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Wall Street Journal&period;<&sol;em><&sol;p>&NewLine;<p class&equals;"MsoNormal">These untraceable currencies have quickly become global terror networks&rsquo&semi; preferred method to move and collect funding&comma; according to Yaya J&period; Fanusie&comma; the director of analysis at the U&period;S&period; thinktank the Foundation for Defense of Democracies&rsquo&semi; Center on Sanctions and Illicit Finance&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;It is fast&comma; efficient&comma; and does not pass through the same interest-loaded and traceable routes that any usual payment methods would go through&comma;&rdquo&semi; said Hassan Abdo&comma; an al Sadaqah spokesman to the <em style&equals;"mso-bidi-font-style&colon; normal&semi;">WSJ&period; <&sol;em>&ldquo&semi;This way we and our donors can keep our full anonymity&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Although these currencies are much more difficult to track&comma; security agencies are still able to find a trail of terror-funding activity through numbers instead of names&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">But these terrorist groups aren&rsquo&semi;t afraid to use complicated approaches to hide funds that are always evolving&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Another separate jihadist media outlet ran a bitcoin funding campaign using a website with a link which opened up to a page on the site that generated bitcoin addresses&comma;&rdquo&semi; writes <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Express UK&period;<&sol;em> &ldquo&semi;This new method worked for the terrorists and kept them from the visible ledger by pointing to an external bitcoin payment site&comma; these links open to a page within the website that generates bitcoin addresses&period; Supporters could copy these addresses and donate to them directly&comma; away from the page&period;&rdquo&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;This shows some technical sophistication on the part of that site&rsquo&semi;s administrators because they apparently have eliminated their dependence on digital currency exchange services&comma;&rdquo&semi; writes Fanusie&period;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Donations to ISIS are being received via Bitcoin all over the world&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">In December&comma; the Department of Justice &lpar;DOJ&rpar; announced that the 27-year-old U&period;S&period; citizen Zoobia Shahnaz was arrested and charged for sending ISIS funds through Bitcoin&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">She was charged with &ldquo&semi;bank fraud&comma; conspiracy to commit money laundering and three substantive counts of money laundering&rdquo&semi; and allegedly sent &dollar;85&comma;000 to Jihadists&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Her &ldquo&semi;transactions were designed to avoid transaction reporting requirements&comma; conceal the identity&comma; source and destination of the illicitly obtained monies&comma; and&comma; ultimately&comma; benefit ISIS&comma;&rdquo&semi; according to the DOJ&period;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">This isn&rsquo&semi;t just about getting funds from supporters either&period; It&rsquo&semi;s about building recruits&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;What they&rsquo&semi;re more than likely attempting to do isn&rsquo&semi;t just to pick up a few peanuts in donations here&comma;&rdquo&semi; said Michael Smith&comma; a fellow at the New America think-tank who studies terrorists&rsquo&semi; use of technology&period; &ldquo&semi;It&rsquo&semi;s to build a network of sympathizers&period;&rdquo&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal"><strong>Author&rsquo&semi;s note&colon;<&sol;strong> It&rsquo&semi;s no surprise that untraceable currency is attractive to terrorist groups&period;&nbsp&semi;But&comma; investors in cryptocurrencies like that there isn&rsquo&semi;t a lot of regulation&period; This makes it risky&comma; but big risks can bring big rewards&period; So should Bitcoin be tracked in a more controlled environment&quest; Or do you allow a freewheeling currency and enjoy the benefits of new economic gains that is less under control&quest;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;

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