The blockchain data analysis company Elliptic, assured in a recent report that the meme cryptocurrency dogecoin (DOGE), is increasingly used in illicit activities. Most of these activities consist of fraud, scams, and ponzi schemes.
“In addition to its use as a means of payment for legal goods and services, Elliptic has identified million dollars in Dogecoin transactions related to illicit activities«, points out the report.
However, the firm warned that its use is being extended to much more serious crimes. such as financing of terrorism and vendors of child sexual abuse material (CSAM).
In the case of child sexual abuse, Elliptic indicated that it “monitors providers” of this type of material that accept cryptoactives as a payment method on the darknet and on the clearnet, for which it has identified that “a small and growing number of These providers accept other crypto assets, including Dogecoin, “highlights the firm.
For Elliptic, the fact that the trend of adoption of Dogecoin has reached those communities It further demonstrates “the appetite of criminal actors to adopt a wide range of crypto assets, in an attempt to avoid being noticed.”
Although they acknowledge that bitcoin (BTC) continues to be at the forefront of criminal operations on the darkweb, as also happens with the financing of terrorism.
This Elliptic claim is based on data released by Israel’s National Counter Terrorist Financing Office, which in 2021 seized 84 crypto-asset addresses believed to be controlled by Hamas.
Only in tether (USDT) and bitcoin, Hamas raised more than $7 millionwhile with Dogecoin they reached $40,000.
“Although a small sum compared to Bitcoin and Tether, this example demonstrates the awareness and growing adoption of a wide variety of crypto assets by groups operating outside the law, such as Hamas,” the firm notes.
Drugs and financing the extreme right with Dogecoin
In the report presented by Elliptic they also mention that the investigation determined that the cryptocurrency created in December 2013, is used for the purchase of drugs and the sale of stolen data on the dark web, and to finance American far-right groups.
Elliptic mentions just kill a “call and email flooding service”, which also provides a credit card verifier, allowing users to check the validity of purchased stolen credit cards.
«just kill It allows users to deposit funds and donate to the site using a variety of crypto assets, including Dogecoin,” he comments.
Also they Far-right groups have increasingly exploited the Internet to build a following and raise funds.
Various websites, forums, blogs, and platforms in this sector are supported in part by cryptocurrency donations. According to the firm, they have identified various groups including one called Infowars that raised over $1,700 in Doge alone.
Elliptic’s analysis indicates that due to the popularity of the cryptocurrency due to the promotions made by Elon Musk and other celebrities, its adoption increased, but not only for its legality, but also put it on the radar of illicit actors.
Despite the popularity of the cryptocurrency, CriptoNoticias reported that after the depreciation of 93% in 14 months of the dogecoin cryptocurrency (DOGE), Elon Musk and his companies Tesla and SpaceX were sued for having encouraged their purchase.