Analyst firm Chainalysis called «extremely low» probability that ISIL has $300 million in the cryptocurrency. This had allowed the head of the monitoring group adjunct to the UN Security Council Hans-Jakob Schindler.
Terrorism financing via a cryptocurrency is a serious subject and a difficult one to report on. We’d like to offer clarifications on a few recent reports that missed the mark. https://t.co/14kNGYvvlL
— Chainalysis (@chainalysis) May 20, 2020
The blog presents an analysis of the widely circulated media statements Schindler. In particular, the official called cryptocurrency ideal mechanism for storage of funds that is unavailable to the eye and inaccessible to governments.
In Chainalysis urged not to inflate sensation to scratch. According to experts of the organization, most of the campaigns on attraction of financing terrorists using crypto-currencies was limited to amounts less than $10 thousand.
Experts have questioned the reliability of the information that the paramilitary Palestinian groups managed via payment service Cash4ps to raise $24 million They called it «disinformation», adding that it was rather on the transfer of funds in separate wallets.
Report Chainalysis also questioned the use of bitcoins supported ISIL terrorists in the financing of the bombings in Sri Lanka in 2019. The arguments in this case.
«The theory of Krakow has very low chances to find a proof of this,» the company said.
Contrary to «theory» and the lack of significant increase in trading volumes on the local bitcoin exchanges as well as speed payment operators in the region.
In Chainalysis believe that for terrorists, it’s much easier to use Fiat currencies and other traditional assets. Transaction with them tracking much more difficult compared to bitcoin because of the transparency of its underlying blockchain technology.
«Each transaction is recorded in a publicly visible registry. With the help of the developed tools we are able to prevent the attackers to use the blockchain for the financing of terrorism and other crimes,» — noted in the company.
Recently Elliptic Analytics company found that the share connected with illegal activity bitcoin transactions in the last few years was less than 1%.