A new report suggests that Tron was the main cryptocurrency used for ISIS transactions in the past year. Sentiment around TRX remained negative as the price fell further.
TRM Labs, a blockchain intelligence platform, recently released a report highlighting the increasing adoption of cryptocurrencies by Islamic State of Iraq and Syria (ISIS) affiliates in Asia. The report established significant chain links between these groups and pro-ISIS fundraising campaigns in Syria.
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The report, released on July 21, presented evidence from 2022 showing that pro-ISIS networks in Tajikistan, Indonesia and Afghanistan used cryptocurrencies to facilitate their operations.
TRM revealed that a majority of transactions related to these cases used USDT on the Tron[TRX] network. Initially, TRM Labs discovered multiple pro-ISIS groups in Tajikistan using cryptocurrencies. These include recruiting fighters for ISKP in Afghanistan.
A fundraising campaign, which ran for a year, received approximately $2 million in USDT on Tron. After identifying and tracing the campaign’s funds on the blockchain, TRM Labs reported the exchange used for the payout. The exchange’s KYC checks helped identify the account operator, which led to alerting local authorities, who disrupted their operations.
In addition, individuals using an Indonesia-based exchange transferred more than $517,000 in Indonesia in 2022. The amount was sent to addresses linked by TRM Labs to pro-ISIS fundraising campaigns in Syria and local facilitation exchanges.
These campaigns aim to help ISIS families held in Syrian camps. Dozens of transfers were made regularly throughout the year, usually in increments of around $10,000, all executed using USDT on Tron.
In addition, in late 2022, an ISIS-affiliated media unit in Pakistan promoted its ability to accept donations. TRM Labs identified addresses audited by the group with a volume of about $40,000 in the past year. In February 2023, the group attempted to raise funds by exploiting earthquakes in Turkey and Syria by posting marked addresses on an ISIS message server.
According to TRM labs, Bitcoin was initially the exclusive currency for terrorist financing in 2016, but their analysis showed that it was all replaced by assets on the TRON blockchain, which accounted for 92% of the volume by 2022.
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It’s a problem for TRON
These factors can negatively affect Tron. Santiment’s data indicated that sentiment around Tron was slightly negative. However, in light of these recent events, sentiment around TRX and Tron could fall further. In addition, volume and development activity also saw a significant decline, worsening things for TRX.
Source: Sentiment
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