Rise in Seizure of TRON Wallets
A recent report reveals that TRON has become a popular platform for crypto transfers associated with terrorist organizations like Hamas and Hezbollah. The Israel National Bureau for Counter Terror Financing (NBCTF) has frozen 143 TRON wallets suspected to be linked to these groups.
Shift from BTC to TRON
There has been a noticeable shift in the modus operandi of these organizations, with an increase in TRON seizures compared to Bitcoin. Israel reported 87 seizures from TRON wallets in 2023 alone, with two-thirds occurring since July 2021.
“Earlier it was Bitcoin, and now our data shows that these terrorist organizations tend to increasingly favor TRON.” – Mriganka Pattnaik, CEO of Merkle Science
The attraction lies in TRON’s faster transaction speeds, lower fees, and overall stability compared to Bitcoin.
Cheaper, Quicker, and Tether Dominance
The cost-effective and rapid TRON network has led to increased usage of Tether (USDT). With over 50% of Tether’s tokens stored and transacted on the TRON network, it indicates a growing reliance on TRON for these activities.
The report also suggests that pressure on Bitcoin’s perceived anonymity is pushing terrorist organizations towards alternatives like TRON.
Israel’s Seizures Post-Hamas Attacks
In response to the recent attacks by Hamas on Israel, the country announced its largest known seizure of crypto accounts, freezing approximately 600 accounts connected to Dubai Co. Some individuals affected by the freeze claimed they were using TRON for legitimate trading and denied any connection with designated terrorist groups.
Binance’s Involvement and TRON’s Response
Binance co-founder Yi He reported the freeze on accounts linked to Hamas militants and emphasized the need for financial entities to cooperate. TRON, on the other hand, clarified that they do not have control over how their technology is used and stated no direct linkage to the identified groups.
Hot Take: The Growing Use of TRON by Terrorist Organizations
The rise in TRON wallet seizures connected to terrorist organizations highlights the challenges faced by governments and law enforcement agencies in combating illicit financing. TRON’s faster transaction speeds, lower fees, and stability make it an attractive choice for these groups. As TRON gains attention from global law enforcement, it will be interesting to see how regulators and technology providers respond to ensure the integrity of crypto networks while addressing security concerns.
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