Mumbai: In a significant shift in their fundraising strategy, ISIS is moving away from popular cryptocurrencies such as Bitcoin and Ethereum, now increasingly soliciting donations through Monero, a privacy-focused cryptocurrency known for its untraceable transactions.
According to senior officials, the change is a response to the growing traceability of non-privacy-oriented tokens, making Monero (XMR) a preferred choice for terrorist groups seeking to evade financial oversight. The cryptocurrency utilizes advanced technologies to obscure transaction details, including the amounts sent and the identities of both the sender and receiver.
Law enforcement agencies and counterterrorism organizations have flagged the use of Monero by ISIS, particularly in its crowdfunding efforts. The group has leveraged its propaganda magazine, Voice of Khurasan, to promote these initiatives. In a recent issue, the magazine featured posters encouraging Muslim supporters to contribute to the cause, framing donations as part of charitable Islamic deeds. One poster, depicting an armed jihadi, urged followers to "Please donate with safe cryptocurrency Monero (XMR) for waging jihad with wealth and to finance those who are waging the same with their lives". The publication prominently displayed its Monero wallet address, facilitating anonymous donations.
ISIS adopts Monero for discreet fundraising efforts | File Photo
A high-level official explained that Monero cryptocurrency is crafted for complete anonymity, distinguishing it from Bitcoin's transparent blockchain. Monero employs advanced cryptographic techniques to mask transaction details through several key features
# Ring Signatures:- This technology blends a user’s transaction with multiple others, making it difficult to ascertain which transaction is authentic.
# Stealth Addresses:- Unique, one-time addresses are generated for each transaction, ensuring that only the sender and recipient can view the actual address involved.
# Ring Confidential Transactions (RingCT):- This feature conceals the exact transaction amount, complicating tracking or verification efforts.
As a terror group ISIS adapts financial landscapes.
According to senior officials, ISIS has been using the cryptocurrency Monero, notorious for its association with illicit activities such as arms and drug trafficking on the dark web. Monero's appeal lies in its ability to provide anonymity, making it the preferred choice for ISIS in conducting clandestine transactions. In addition, Fundraisers for the organization have emerged on encrypted messaging apps and social media, encouraging donations in Monero to avoid detection by authorities.
to sustain their operations, ISIS reportedly transfers Monero to secure funding. Once they accumulate Monero, they typically need to convert it into fiat currencies like USD or Euros for operational costs. To facilitate this conversion, they often use mixing services or poorly regulated cryptocurrency exchanges. For those prioritizing privacy, decentralized exchanges (DEXs) allow peer-to-peer trading without a centralized authority. Examples include:
# MorphToken: Allows users to exchange Monero for other cryptocurrencies without registration.
# Bisq: A decentralized exchange that supports Monero.
Additionally, peer-to-peer exchanges are employed, enabling individuals to buy Monero with cash, making it more difficult to trace transactions.
The rise of Monero as a fundraising tool for ISIS has raised alarm among security and intelligence agencies. Law enforcement officials have expressed concerns that the ISIS shift to Monero could embolden other terrorist organizations and criminal groups to adopt similar methods. While governments are working to increase regulation of cryptocurrency exchanges and bolster technological capabilities to track such transactions, the unregulated and decentralized nature of Monero presents significant obstacles.
