Elliptic revealed that there have been several instances where Dogecoin has been used for numerous illegal activities. The blockchain analytics firm revealed in its report that the currency popularized by Elon Musk has become an option”popular” to facilitate illicit transactions for amounts exceeding one hundred million.
While the vast majority of this activity consists of frauds, scams and Ponzi schemes, it also includes the most serious types of crimes, including financing terrorism and sellers of child sexual abuse material (CSAM) .
In July 2021, the National Counter-Terrorist Financing Bureau issued a seizure order against 84 cryptocurrency addresses suspected of being associated with the Hamas group. One of these wallets contained $40,235 worth of Dogecoin.
Additionally, the analytics firm found that a small but growing number of MCA sellers on the darknet and outside are now receiving bitcoin. The elliptical only identified $3,000 in dogecoin, which is a small sum.
But he warned it could represent a “growing appetite for criminal actors to adopt a wide range of crypto assets to avoid being noticed.”
Darknets accept Dogecoin
Several darknet markets and malware campaigns also accept Dogecoin. Elliptic has identified darknet services such as Just-Kill which still accept Dogecoin while others no longer accept it.
Besides terrorists, far-right groups also seem to have taken a liking to cryptocurrencies, including Dogecoin. These groups, far-right sites, news and video sharing platforms, use Dogecoin to raise funds when they cannot use traditional methods.
Infowars is one such site. The far-right news site that fights globalism has raised over $1,700 in Dogecoin. This discovery is similar to revelations by the Financial Action Task Force last year about far-right groups using cryptocurrencies such as bitcoin.
However, Ponzi schemes, theft and fraud seem to be the biggest illicit use of Dogecoin. Elliptique claims to have identified more than 50 cases where Criminals cashed in millions of dollars in Dogecoin.
Popular examples include the alleged theft of $119 million in Dogecoin associated with a Turkish Ponzi scheme last year. In 2020, the Chinese government also seized over 20 million Dogecoin in the $6 billion PlusToken Ponzi scheme.
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