Losing money to a crypto scam is certainly a calamity. However, the victim of the bitcoin fraud isn’t the only one who loses. Society at large and individuals across the globe can be impacted by cyber criminals using funds for terrible purposes.
Some of these scammers are funding other types of scams, such as Andrew Tate, who allegedly took crypto payments to perpetuate his human trafficking business. Other crypto scams are fronts for terrorist groups, or at least, they donate to these dangerous organizations.
It can be so traumatic to lose money to a cryptocurrency scam that the idea of how the stolen money is being used may seem like an afterthought. However, the notion that bitcoin scams are funding terrorism is sobering and emphasizes the importance of reporting all incidences of crypto fraud and seeking crypto recovery.
Crypto Scam Terrorists are Using Mainstream Platforms
Although many crypto exchanges aren’t licensed, there is a general sense of security about the most high-profile platforms. However, even popular crypto exchanges such as Binance aren’t immune from money laundering and funding terrorism.
This doesn’t implicate Binance itself, of course, in these crimes. However, recent cases highlight vulnerabilities on this platform and the need for more compliance, scrutiny of clients, and security.
According to Reuters, Israel’s National Bureau for Counter Terror Financing (NBCTF) seized 190 wallets on Binance on suspicion that money was directly funding terrorist groups the Islamic State and Hamas.
Although the NBCTF didn’t reveal the amount of money that was involved or further details about their precise connection with the terrorist groups, apparently, the suspicions were compelling enough to justify the action.
After the incident, Binance executives released a statement that it was “working closely with international counter-terrorism authorities.” At the same time, Binance insisted that there was nothing suspicious about these wallets and accounts initially that would have caused them to suspect illegal activities.
Recently, the Commodity Futures Trading Commission has announced it’s suing Binance for
non-compliance to U.S. regulations and not taking sufficient action to prevent illicit financial activity.
Meanwhile, Binance is eager to prove that it’s doing its best to protect customers. It issued a statement to the U.S. Senate that it is investing substantial money in its compliance program and is also operating under the European Union’s anti-money laundering and anti-terrorism rules.
Crypto Scam Terrorism–Not a New Problem but a Growing One
It’s a question of whether the fault is crypto platforms like Binance or whether crypto scams and terrorist funding have become increasingly inscrutable and commonplace.
The U.S. Treasury warned in a report from 2022 that the Islamic State was regularly receiving donations and payments in cryptocurrency. The U.S. Treasury warned in a report from 2022 that the Islamic State was regularly receiving donations and payments in cryptocurrency.
In fact, cryptocurrency has been a financial product of choice for terrorist groups. The Islamic State regularly transferred funds in digital currencies as far back as 2014 and 2015. Traditional sanctions and the strategy of freezing bank accounts are being subverted and rendered almost toothless as long as terrorists can transfer money, buy and sell in cryptocurrencies.
How to Keep Crypto Scams from Funding Terrorist Groups
The best way to keep crypto scams from funding terrorist groups is never to send them money in the first place. That means recognizing signs of a scam. Avoid brokers that are unlicensed, give huge guarantees of returns, are brand-new, and have website copy that isn’t competently written.
Find out who the broker is, if they are licensed, what their reputation is, and if they’ve been flagged by regulators. Also, do thorough research and consult our updated scam broker list to check if your broker is problematic.
However, even people to take precautions can find themselves unwittingly involved in a bitcoin scam. If you’ve lost money to crypto scam, report the incident and seek the aid of professionals who can guide you on the path to crypto recovery. If you manage to retrieve your funds, that’s less money they can use for dangerous, illegal actions, such as terrorist attacks.
If You Need Fund Recovery from a Suspected Scam Broker, talk to Broker Complaint Registry
If you have an account with a broker you suspect may be a scam, close it and request a withdrawal. If you are not given your money back, contact Broker Complaint Registry right away. We will consult with you, work to track down your funds and create investigative reports, and will assist with fund recovery efforts.