Mumbai: In a major shift in its fundraising strategy, ISIS has moved away from popular cryptocurrencies such as Bitcoin and Ethereum, and is increasingly soliciting donations through Monero, a privacy-focused cryptocurrency known for its untraceable transactions.
The changes are in response to the increasing traceability of non-privacy-oriented tokens, making Monero (XMR) a preferred choice for terrorist groups seeking to evade financial oversight, officials said. This cryptocurrency utilizes advanced technology to obscure transaction details, such as the amount sent and the identity of both the sender and recipient.
Law enforcement and counterterrorism organizations have warned of ISIS's use of Monero, particularly in its crowdfunding efforts. The group has used its propaganda magazine, Voice of Khurasan, to promote these efforts. In a recent issue, the magazine featured a poster that positioned donations as part of Islamic philanthropy and encouraged Muslim supporters to contribute to the cause. One poster depicting an armed jihadist uses the secure cryptocurrency Monero (XMR) to wage his jihad for his wealth and to fund those who are risking their lives to do the same. Please donate,” he asked his followers. The publication prominently displayed Monero wallet addresses to facilitate anonymous donations.
ISIS adopts Monero for discreet fundraising | File photo
The official explained that the Monero cryptocurrency is designed to provide complete anonymity, distinguishing it from Bitcoin's transparent blockchain. Monero employs advanced encryption technology to mask transaction details through several key features.
# Ring signature:- This technology mixes a user's transactions with multiple other transactions, making it difficult to verify which transactions are genuine.
# stealth address:- A unique one-time address is generated for each transaction, allowing only the sender and recipient to view the actual addresses involved.
# Ring Confidential Transaction (RingCT):- This feature hides the exact transaction amount, complicating tracking and verification efforts.
As a terrorist group, ISIS is adapting the financial landscape.
ISIS uses Monero, a cryptocurrency notorious for its links to illegal activities such as arms and drug trafficking on the dark web, government officials said. Monero's appeal lies in its ability to provide anonymity, making it a favorite choice for ISIS when conducting clandestine transactions. What's more, people have started fundraising for the organization on encrypted messaging apps and social media, encouraging donations in Monero to avoid detection by authorities.
ISIS is reportedly giving away Monero to secure funding to sustain its operations. Once you accumulate Monero, you typically need to convert it into fiat currency such as USD or EUR for operating costs. Mixed services and poorly regulated cryptocurrency exchanges are often used to facilitate this conversion. If privacy is a priority, decentralized exchanges (DEXs) allow peer-to-peer trading without the need for centralized authority. Examples include:
# Morph token: Allows users to exchange Monero for other cryptocurrencies without registration.
#bisque: A decentralized exchange that supports Monero.
Furthermore, the adoption of peer-to-peer exchanges allows individuals to purchase Monero with cash, making transactions more difficult to trace.
The rise of Monero as a funding tool for ISIS has raised alarm among security and intelligence agencies. Law enforcement officials have expressed concern that ISIS' move to Monero could encourage other terrorist organizations and criminal groups to adopt similar methods. Governments are working to tighten the regulation of crypto exchanges and strengthen their technical capacity to track such transactions, but the unregulated and decentralized nature of Monero remains a major stumbling block. I am.
