- Reports reveal increasing cryptocurrency usage by ISIS and supporters in Asia
- TRM Labs has found mounting on-chain evidence of pro-ISIS networks employing cryptocurrencies in Tajikistan, Indonesia, Pakistan, and Afghanistan
- Authorities have taken action against some alleged perpetrators, but concerns persist as pro-ISIS groups continue to exploit digital currencies
Blockchain analytics firm TRM Labs has uncovered substantial on-chain evidence of cryptocurrency usage within pro-ISIS networks in Tajikistan, Indonesia, Pakistan, and Afghanistan. Extensive research over the past year has identified a growing trend of using Tether (USDT) on the Tron network as a major method of fundraising, with the money flowing through multiple countries and into the coffers of ISIS sympathisers in the region.
TRM Labs Investigation Let to Arrest
Recent reports issued by the US Treasury Department and the United Nations have raised alarm over the escalating use of cryptocurrencies by ISIS and its supporters across Asia. Authorities have taken action against some alleged perpetrators involved in these illicit activities, but concerns remain as pro-ISIS networks continue to find ways to exploit digital currencies.
In Tajikistan, TRM Labs discovered a fundraising campaign linked to pro-ISIS groups that collected approximately $2 million in USDT on Tron during 2022. Promptly alerting the relevant exchange, TRM Labs assisted in the arrest of a senior ISIS fundraiser, Shamil Hukumatov, in Turkey on June 22, 2023.
Indonesia, too, has witnessed substantial cryptocurrency transfers amounting to over $517,000 in 2022. These funds were sent from an Indonesia-based exchange to addresses associated with pro-ISIS fundraising campaigns in Syria, supposedly aimed at assisting ISIS families in Syrian camps. The transactions were consistently made using USDT on Tron. The US Treasury Department’s Office of Foreign Asset Control had previously sanctioned five Indonesian nationals for facilitating similar money transfers to ISIS members in Syria.
Media Units Also Involved
In Pakistan, a media unit linked to ISIS’s affiliate (ISPP) began publicizing its ability to accept cryptocurrency donations in the second half of 2022. TRM Labs detected addresses controlled by the group with a total transaction volume of about $40,000 over the past year. They attempted to exploit the aftermath of earthquakes in Turkey and Syria in February 2023 to raise funds, but their activities were flagged and exposed by TRM Labs.
Afghanistan’s al-Azaim Foundation for Media Production (al-Azaim), affiliated with ISIS, showed evidence of using cryptocurrencies to fund its operations and receive supporter funds, an aspect previously undisclosed by the group. TRM Labs also identified on-chain links between addresses controlled by al-Azaim and the Pakistan-based ISIS group, indicating regional connections.
What these diverse case studies have in common is their on-chain links to pro-ISIS fundraising campaigns in Syria. The region remains a significant hub for cryptocurrency use by ISIS and its supporters, particularly in providing financial aid to ISIS families held in camps like al-Hol and Roj. The need to track and disrupt these pro-ISIS networks globally has become a critical concern for authorities and security agencies.
