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Analysts at Chainalysis said that transfers in cryptocurrencies for terrorist financing account for a small share - terrorists mainly use fiat currencies.
In a blog post by Chainalysis, researchersnote that some terrorist organizations do use cryptocurrencies, but their share in the total flow of funds is insignificant. According to experts, many officials and analysts exaggerate the role of cryptocurrencies in such financing.
“Although terrorist financing only takesa small share in illegal crypto transactions (and there are also very few of them), some groups receive, store and move funds using digital assets. However, such organizations have historically used and will likely continue to use traditional fiat currency-based methods. These include various financial institutions and shell companies,” Chainalysis analysts emphasized.
Experts recalled that nature itselfCryptocurrency is not very suitable for terrorists - transactions are recorded in the blockchain, so intelligence agencies and analytical firms are able to detect and prevent terrorist financing using digital assets.
It was recently reported that Hamas militants received funds through the Russian crypto exchange Garantex. However, company representatives denied this information.