In a recent report TRM labs, a blockchain analytics company, said that terrorist groups associated with the terrorist group ISIS use crypto to fundraise, and in some cases, this has helped them secure supporters.

TRM reports that multiple pro-ISIS Tajikistan groups raised USDT-based Tron equivalents of around $2 million during 2022. They were recruiting fighters to join ISIS’s Afghan affiliate, The Islamic State-Khorasan Province. TRM was able track the funds and alert the exchange because the groups were using an unnamed central exchange to cash them out.

This exchange identified the user, who was then reported to the authorities. TRM reported that as a result of this, senior ISIS fundraiser Shamil Huskumatov was arrested on June 22 in Turkey.

According to TRM, another pro-ISIS organization raised more than $517,000 by using a trading account in Indonesia. The campaign was designed to release ISIS members from Syrian internment camps. The report states that donations for this campaign were often quite large, averaging around $10,000 per donation.

TRM reported that ISIS affiliates have raised $40,000 in the last 12 months pretending to aid the victims of an earthquake in Turkey and Syria, scheduled for February 2023.

Al-Azaim Foundation for Media Production in Afghanistan, an ISIS-friendly media group, used cryptocurrency for fundraising. TRM claimed to have identified the wallets that were controlled by the group who received $10,000.

In the last few years, terrorists and insurgents have used crypto to fund their activities. Binance, a global crypto exchange, reportedly frozen the accounts of the Hamas militant wing in 2021. The account had accumulated $80,000 within a month, CoinDesk reported. In April, Hamas announced that the traceability of Bitcoin led them to abandon as a method of fundraising in 2023. “For the safety of their donors”, the groups said.