The Rise of Tron as a Platform for Militant Groups
The Tron blockchain has become increasingly popular among Iran-backed militant groups, surpassing the Bitcoin network in terms of cryptocurrency transfers linked to designated terrorist organizations. This shift is due to Tron’s faster and cheaper transaction capabilities compared to Bitcoin, making it an attractive choice for these groups.
An Increase in Attacks on Tron Wallets
Israeli security services have observed a significant rise in attacks on Tron wallets, as evidenced by their cryptocurrency seizures since 2021. In contrast, there has been a decrease in the seizure of Bitcoin wallets.
“Earlier it was Bitcoin and now our data shows that these terrorist organizations tend to increasingly favor Tron.”
Mriganka Pattnaik, CEO of New York-based blockchain analysis firm Merkle Science
Israel’s Efforts to Combat Terrorism Financing
Israel’s National Bureau of Counter-Terrorism Financing (NBCTF) has taken action against Tron wallets associated with designated terrorist organizations or serious terrorist crimes. From July 2021 to October 2023, the NBCTF froze a total of 143 Tron wallets.
Notably, Israel seized 87 Tron wallets this year alone, including 39 wallets belonging to Lebanese Hezbollah and 26 wallets belonging to Hamas, an ally of Palestinian Islamic Jihad. In October 2023, Israeli authorities successfully froze cryptocurrency accounts used by Hamas with the assistance of the Binance exchange.
Cooperation Between Binance and Israeli Authorities
Binance played a crucial role in cooperating with Israeli authorities to identify and close down terrorist accounts. The seized funds from these accounts will be transferred to the state treasury.
Hot Take: The Growing Concern of Cryptocurrency Use by Militant Groups
The increasing adoption of Tron by Iran-backed militant groups highlights the need for enhanced measures to combat terrorism financing through cryptocurrencies. As these groups exploit the speed and cost-effectiveness of platforms like Tron, it becomes imperative for governments and blockchain analysis firms to stay vigilant in monitoring and disrupting their activities. Cooperation between law enforcement agencies and cryptocurrency exchanges, as demonstrated in the case of Binance and Israeli authorities, is crucial in combating this emerging threat.
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