Category: Scam News

The Disturbing Link Between Crypto Scams and Terrorist Groups


Losing money to a crypto scam is traumatic. So is being targeted by a terrorist attack. What is the connection between the two disasters? The link can be stronger than it may appear at first glance. 

Once crypto scam victims lose their money, they’ll want to know where the funds went. Finding out what the money was used for is of course useful in the crypto recovery process. It’s also essential information for anti-terrorist investigations. 

It’s upsetting to lose money, but it can be even more disturbing to consider that our stolen funds are being used for activities such as human trafficking, kidnapping, and deadly terrorist attacks. That’s why the issue of crypto scams is far-reaching and is even a concern for national security. 

Terrorists and Bitcoin Scams Operate Even on Popular Platforms

Binance is one of the most popular and trusted crypto platforms. However, it has run into problems because of dodgy activities occurring on its exchange. 

According to Reuters, Israel’s National Bureau for Counter-Terror Financing (NBCTF) seized 190 accounts on the Binance platform because they were suspected of being used to fund the Islamic State and Hamas terrorist groups. Although no details were released about the amount and the scale of the activities, the news had a huge impact on Binance. 

Binance insisted it was cooperating with these anti-terrorist investigations and that it had no indication that the holders of these wallets were in any way connected with cybercrime or terrorism. 

This isn’t the first time the leading crypto platform has faced accusations of being lax with security. When the Commodity Futures Trading Commission announced it was suing Binance for non-compliance with U.S. regulations meant to protect against illegal financial activity, it faced $2 billion in outflows from its platform.

Eager to salvage its reputation and reassure the public, Binance has issued statements to the U.S. Senate that it is investing more funds into compliance and security and that it adheres fully to EU anti-money laundering and anti-terrorism procedures.

The Relationship Between Crypto Scams and Terrorism Isn’t New, but It’s Getting Tighter

U.S. authorities have known about the Islamic State’s use of cryptocurrency for transactions at least since 2014.  In a U.S.Treasury report from 2022, it was revealed that the Islamic State was regularly receiving cryptocurrency donations and withdrawing them in cash.

Terrorists and cybercriminals find cryptocurrency convenient because it is anonymous, they can launder money on the blockchain quickly and it is still under the radar from government regulation. 

One of the reasons governments are fast-tracking legislation to regulate cryptocurrencies is that bad players often circumvent sanctions and, in spite of having frozen assets and bank accounts, can freely buy, sell and send cryptocurrencies to accomplices. 

Although new laws are being drafted that will combat this problem, the scale and severity of crypto scams and terrorist funding will continue to pose a challenge to law enforcement and ant-terrorist organizations. 

How Crypto Recovery Keeps Funds Away from Terrorists

The best way to keep your money away from terrorists’ reach is to avoid crypto scams. That means researching all brokers before opening an account and checking our broker reviews to avoid suspected fraud. Work only with licensed financial companies and be alert to potential problems. 

If you’ve lost money to a crypto scam, it’s imperative to report the problem immediately and enlist the aid of crypto recovery professionals who can help you retrieve your funds and keep them out of the hands of cybercriminals, including terrorists. 

Have You Lost Money to a Bitcoin Scam? Talk to Crypto Complaint Experts 

If you’ve lost money to a fraudulent broker or crypto scam, don’t suffer in silence. Speak to CryptoComplaint experts right away. We will consult with you, create a strategy and launch a full fraud investigation. Our team is adept at tracking down funds on the blockchain and dealing with law enforcement and financial authorities to help you achieve a successful outcome for your claim.

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