Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Secret Documents Show How Terrorist Supporters Use Bitcoin

Secret Documents Show How Terrorist Supporters Use Bitcoin

The propagandist who called himself Azym Abdullah didn’t need much money to set up a website for ISIS that would broadcast gruesome beheading videos.
What he needed was secrecy, so in 2014 he reportedly turned to cryptocurrency.

He paid a little more than 1 bitcoin, approximately $400 at the time, to register the domain name in Iceland and host it on servers around the globe. His site asked visitors for donations to help pay for the upkeep. Those, too, were in bitcoin.

Sending donations that way allowed his donors to shield their identities behind a string of letters and numbers — a favored technique that is making it harder for banks, law enforcement authorities, and the US Treasury Department to track and slow the flow of money supporting terrorism.

Abdullah’s reliance on bitcoin is documented in a 2017 Treasury Department intelligence assessment, which was received by BuzzFeed News as part of a cache of documents that includes internal emails and reports about cryptocurrency. The intelligence assessment also reveals evidence of nine other incidents where terrorist supporters used cryptocurrency to fund their activities, from purchasing airline tickets to defacing a political website to arranging travel to Syria.

The vast majority of crypto transactions are used for legitimate purchases. But the documents provide insight into the US government’s ongoing, sometimes lagging, battle to counteract the use of crypto technology to foster terrorism and crime, as well as the variety of ways that crypto — with its presumed anonymity and ease of transfer around the globe — can be used for nefarious purposes.

In 2016, for instance, analysts at the US Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, raised alarms about so-called mixers — companies that break up crypto transactions into smaller pieces to further shield the identity of the owner. When those companies operate in the US, they are supposed to register with FinCEN and provide information about suspicious clients and transactions. But the report, which is among the documents received by BuzzFeed News, found that “of the 30 largest mixing services, none have registered … or shown any evidence of a compliance program.”

It wasn’t until nearly four years later that the government took action. Last year, FinCEN fined one of the mixers $60 million for failing “to collect and verify customer names, addresses, and other identifiers on over 1.2 million transactions.” Those transactions, the government found, aided criminals involved with illegal narcotics, fraud, counterfeiting, and child exploitation as well as neo-Nazi and other white supremacist groups. FinCEN said it tracked transactions worth more than $2,000 from the mixer to a website called Welcome to Video that hosted child sexual abuse materials.

The documents examined by BuzzFeed News trace the Treasury Department’s concerns about crypto technology back at least 10 years. FinCEN is now trying to change its rules so that any company dealing with cryptocurrency will have to get clearer information about their customers and their transactions.

FinCEN and the Department of Justice did not respond to messages seeking comment.

Yaya Fanusie, a former CIA analyst and an expert on the national security implications associated with cryptocurrencies, said he believes that US officials are ahead of their European counterparts in addressing the issue. But, like other experts contacted by BuzzFeed News, he said he sees a need for a new class of financial investigators to stop cryptocurrency from being misused by terrorists, narcotraffickers, and other criminals.

“For people on the ground, crypto is harder to understand when compared with more traditional means of money laundering,” said Fanusie, now a senior fellow at the Center for a New American Security. “Only recently are the skills and resources getting deployed at the field level.”

As regulators and the industry slowly adjust, the allure of crypto remains strong, with terrorists finding they can use it to solicit donations to fund operations. Last August the Department of Justice announced that an investigation conducted in cooperation with the Treasury Department had seized millions of dollars as part of the “largest ever seizure of terrorist organizations’ cryptocurrency accounts.”

One of the indictments described how al-Qaeda and affiliated groups ran a money laundering operation that solicited donations in crypto over social media accounts. They then used that network for donations “to further their terrorist goals.” One of the al-Qaeda associated networks tracked by the government received more than 15 bitcoins, worth thousands of dollars, in 187 transactions between Feb. 5, 2019, and Feb. 25, 2020.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
×