Chainalysis denies rumors: ISIS does not own $300 million in BTC
Chainalysis, a company specializing in blockchain analysis, has published a study that attempts to disprove the theories that cryptocurrency is used for terrorist financing.
The report points out that these false reports encourage the dissemination of false information, damaging the reputation of companies operating with virtual currencies.
In particular, Chainalysis states:
„As a trusted investigative partner for governments around the world, preventing terrorists from using cryptocurrency is one of our primary objectives.
This is a serious task, and it is critical to be responsible and accountable when releasing information on a subject as important as terrorist financing.
ISIS does not have $300 million in Bitcoin
Chainalysis quotes articles published last week, according to which ISIS’s alleged $300 million war booty was transferred to Bitcoin (BTC). The original source of this information is Hans-Jakob Schindler, head of the think-tank Counter Extremism Project, who simply made the following assumption:
„It is possible [that the cryptocurrency] was one of the ways [these funds] were used.“
However, several journalists have reported this information as a certain and demonstrable fact. Moreover, Chainalysis called Schindler’s theory „highly unlikely“:
„We know that the majority of terrorist funding campaigns have received less than $10,000, indicating a limited adoption rate.
Moreover, if ISIS had channeled the oil revenues into Bitcoin Trader, Bitcoin Billionaire, Bitcoin Revolution, Bitcoin Profit, Bitcoin Evolution, Bitcoin Era, Immediate Edge, Bitcoin Circuit, Bitcoin Code, The News Spy, the trading volumes of local exchanges and payment processors would certainly have reflected this flow of funds“.
Chainalysis also mentions another study of his, the „2020 Crypto Crime Report“, according to which there is no evidence that the bombing of Sri Lanka by ISIS in 2019 was funded by Bitcoin.
Bitcoin was not used to donate $24 million to the Popular Resistance Committees.
According to articles published in January of this year, the Popular Resistance Committees of Gaza have obtained funding of $24 million through the local Cash4PS service.
Chainalysis also refuted this theory: the articles in question claimed, without any evidence, that every single transaction made through Cash4PS wallets was related to terrorist financing.
Moreover, most of the funds received by Cash4PS wallets came from other addresses within the same network. Chainalysis estimates that only one million dollars came from external sources.