As Per Congressional Testimony, Terrorist Prefer Cash Over Crypto
September 10, 2018 1:59 pm
According to the reports, the Financial Services Committee has published a testimony. The testimony says that the terrorist groups like Al-Qaeda and ISIS have failed to raise money to fund their criminal operation using cryptocurrency.
Mr. Yaya Fanusie, director of analysis for the Foundation for Defense of Democracies Center on Sanctions and Illicit Finance spoke to Congress today at the House Financial Services Committee. He stated that the foreign terrorist organizations (FTOs) have failed after repeatedly trying to fund their criminal operations via digital currencies like Bitcoin.
The expert on illegal financial transactions pointed out a case of a failed online campaign that saw only two contributions being made to the Iraq-based Mujahideen Shura Council (MSC). The two transactions just amounted to around $500.
Yaya Fanusie, further explained that “cold hard cash is still king” for terrorists because how easy it is to hide money and keep funding anonymous. Money laundering is the primary concern around digital currencies, particularly privacy coins that keeps senders and receivers completely unknown. Although, terrorists further need to spend raise funds on various goods and supplies often conducting transactions in desolate locations with “unreliable technology infrastructure,” as per Fanusie. In such a situation, the advanced technology powering digital currencies becomes a hindrance for terrorists.
Fanusie also warned Congress mentioning that crypto-based fundraising campaign could eventually become a successful means of fund their operation. Fanusie also stated that all U.S. government agencies that focus their investigation on terrorist funding should better understand the ins and outs of digital currency transactions for an excellent analysis.
Yana Fanusie stated:
“By preparing now for terrorists’ increasing use of digital currencies, the U.S. can curb the ability to turn digital currency markets into a sanctuary for illegal finance.”
Yana Fanusie further warned Congress of the possible risks involving money laundering concerning the privacy coins. The list of the coins includes Monero, Zcash, or Dash, that enable both transacting parties to remain anonymous. He emphasized that although bigger exchanges like Coinbase or Gemini have stringent anti-money laundering policies, other exchanges are far laxer and could pose a substantial risk.