A US Congressional subcommittee is examining whether local extremists are using cryptocurrency as a source of funding for their activities.
On February 25, the Subcommittee on National Security, International Development and Monetary Policy will hold a hearing on “Dollars Against Democracy: Terrorism Financing in the Country After the Uprising.” The committee’s note before the hearing stated that “with increasing control over traditional banks and payment platforms, extremists are resorting to cryptocurrency requests.”
The memo contains cryptocurrencies along with other potential opportunities to fund illegal activities, including crowdfunding, charities, and social media platforms. Two major events are used to indicate that the cryptocurrency could help fund the Capitol Uprising.
In particular, on December 8th, a French extremist sent 28.15 Bitcoins (valued at $ 522,000 at the time of conversion) to 22 addresses, many of which belonged to well-known far-right activists and internet personalities.
The more than $ 250,000 of the BTC he sent went to activist Nick Fuentes, who was identified as being on the Capitol building during the uprising, although he strenuously denied entering the building.
Another source cited in the memo was the live broadcast of the Capitol protest on video streaming platform Dlive, in which the operator received about $ 222 in cryptocurrency advice. According to the document, the platform has paid extremists “hundreds of thousands of dollars since its inception.” The platform was purchased by BitTorrent, a peer-to-peer file sharing service owned by the Tron Foundation.
However, the memo acknowledges that the two incidents are evidence after proof and that “it is not known whether the money from this Bitcoin or other money was used in planning the January 6 Trump rally or the subsequent Capitol uprising.”
The commission believes that when the traditional economy encourages reporting of suspicious activity, it is more likely that future insurgents will resort to unconventional methods to finance their activities. He added that “some of the arrests related to the January 6 attack” were successful thanks to the reporting methods used by banks and other organized financial institutions.
There is still a major departure from the “cryptocurrency criminal haven” story.
Bitcoin Impact Pierre Rochhard responded to the memo on Twitter: “Almost all domestic terrorism occurred before the invention of Bitcoin. Domestic terrorism is funded in US dollars.”
A cryptocurrency investor called The Crypto Monk said that even Pokemon cards would be better for payments than Bitcoin due to the cryptocurrency’s ability to track funds.