TRX: Token du jour for Terrorists | Reuters

By Kwame
Published 28/11/2023
TRX: Token du jour for Terrorists | Reuters

Tron, known for its speed and cost-effectiveness – compared to Bitcoin – has become the preferred platform for crypto transactions linked to terrorist organizations, as per a Reuters analysis.

Their analysis highlights that Israeli security agencies have significantly increased their seizure of Tron wallets since 2021, clamping down on a whopping 143 linked to terrorist activities or organizations. Notably, Israel seized 87 Tron wallets in 2023 alone, with a substantial number linked to Hezbollah, Palestinian Islamic Jihad and Hamas.

The most substantial seizure by Israel occurred shortly after the Hamas attack, involving around 600 accounts connected to Dubai Co. Israel labels this company as a terrorist entity due to its financial support to Hamas. A representative of Dubai Co., whose contact details were included in the seizure notice, did not respond to inquiries for comments.

Over a dozen individuals, whose funds were among the 600 accounts frozen, spoke to Reuters, affirming their use of Tron but denying any ties to Hamas or Islamic Jihad. They claimed their crypto activities were purely for business or personal financial reasons.

Only one individual, self-identified as Neo, conceded the possibility of having transferred money to someone linked to Hamas on a single occasion. The accuracy of estimates regarding the amount of money reaching prohibited groups via cryptocurrencies is questionable. It’s challenging to ascertain whether funds sent to the seized wallets were indeed intended for these groups.

The Role of Tether and Tron in Cryptocurrency

Tether, the world’s largest stablecoin, has emerged as the dominant cryptocurrency on the Tron network. It is backed by reserves to maintain a 1:1 value ratio with the U.S. dollar and is actively involved in tracking and freezing tokens used for illicit purposes.

Despite its lower profile outside crypto circles, Tron is the primary blockchain for Tether transactions, hosting $48 billion worth of Tether tokens. The platform has seen a significant increase in transaction volume, demonstrating its growing importance in the crypto industry.

Legal Challenges and User Anonymity

Justin Sun, the founder of Tron, faced legal challenges when the U.S. Securities and Exchange Commission sued him for allegedly inflating trading volumes and selling Tron tokens as unregistered securities. Sun has refuted these allegations.

Despite the traceability of crypto transactions on the blockchain, identifying the real parties involved remains a challenge, especially for those outside law enforcement. This presents ongoing concerns regarding the use of cryptocurrencies for illicit activities.

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