Chainalysis says some reports might be overestimating crypto's role in terrorist financing

Tags

Top Highlights

• n the wake of the recent Hamas attack in Israel, crypto analytics firm Chainalysis said Wednesday that's its been receiving lots of questions about how terrorist groups might be using cryptocurrency. But it said some reports about the supposed use might be overstating metrics and using "flawed analyses."

• Although terrorism financing is a very small portion of the already very small portion of cryptocurrency transaction volume that is illicit, some terrorist organizations raise, store, and transfer funds using cryptocurrency," it wrote in a blog post. "Terrorist organizations have historically used and will likely continue to use traditional, fiat-based methods such as financial institutions, hawalas, and shell companies as their primary financing vehicles."

• "Terrorists, rogue nations, drug traffickers and other criminals are using cryptocurrency to endanger our allies and U.S. national security," Warren co-wrote in an op-ed in the Wall Street Journal Wednesday evening along with Sen. Roger Marshall, a Republican from Kansas.