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Is Tron the network for the illegal? This latest report suggests that…

2min Read

Tron becomes the most used network for ISIS to transfer funds according to recent data. Sentiment around TRX remains negative as volume around the token starts to fall.

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  • A new report suggests that Tron was the major cryptocurrency used for ISIS transactions over the last year.
  • Sentiment around TRX remained negative, as the price continued to decline.

TRM Labs, a blockchain intelligence platform, recently published a report highlighting the increasing adoption of cryptocurrencies by affiliates of the Islamic State of Iraq and Syria (ISIS) in Asia. The report established significant on-chain connections between these groups and pro-ISIS fundraising campaigns in Syria.

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For all the wrong reasons

Released on 21 July, the report presented evidence from 2022, indicating that pro-ISIS networks in Tajikistan, Indonesia, and Afghanistan employed cryptocurrencies to facilitate their operations.

TRM revealed that a majority of the transactions associated with these cases utilized USDT on the Tron[TRX] network. Initially, TRM Labs detected multiple pro-ISIS groups in Tajikistan utilizing cryptocurrencies. These included recruiting fighters for ISKP in Afghanistan.

One fundraising campaign, active for a year, received approximately $2 million in USDT on Tron. After identifying and tracing the campaign’s funds on the blockchain, TRM Labs notified the exchange used for cashing out. The exchange’s KYC controls helped identify the account operator, leading to alerting local authorities, who disrupted their activities.

Additionally, in Indonesia, individuals using an Indonesia-based exchange transferred over $517,000 in 2022. The amount was sent to addresses linked by TRM Labs to pro-ISIS fundraising campaigns in Syria and local facilitating exchanges.

These campaigns purportedly aim to aid ISIS families held in Syrian camps. Throughout the year, dozens of transfers were regularly made, typically in increments of around $10,000, all executed using USDT on Tron.

Moreover, in late 2022, an ISIS-affiliated media unit in Pakistan promoted its ability to accept donations. TRM Labs identified addresses controlled by the group with around $40,000 in volume over the last year. In February 2023, the group attempted to raise funds by exploiting earthquakes in Turkey and Syria, posting flagged addresses on an ISIS messaging server.

According to TRM labs, initially, Bitcoin was the exclusive currency for terrorist financing in 2016, but their analysis showed that it was all replaced by assets on the TRON blockchain, which accounted for 92% of volume in 2022.

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It’s trouble for TRON

These factors could impact Tron negatively. Santiment’s data indicated that the sentiment around Tron was slightly negative. However, in light of these recent events, the sentiment around TRX and Tron could decline further. Additionally, the volume and development activity also witnessed a significant decline, thus worsening things for TRX.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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