Criminals prefer DOGE for terrorism-related activities, selling CSAM

Criminals prefer DOGE for terrorism-related activities, selling CSAM

IMPORTANT POINTS

  • Malicious actors launching malware attacks have been found using Dogecoin
  • DOGE has been accepted as a form of payment in the DarkNet drug market
  • DOGE traded 3.64% at $0.06553

Dogecoin, the world’s first meme coin and Elon Musk’s favorite crypto, is one of the most popular altcoins not only by investors but also by criminals, according to a new report. It noted that DOGE is the cryptocurrency favored by bad actors over Bitcoin and Ethereum.

Elliptic Connect, a blockchain analytics firm focused on preventing financial crimes in the cryptocurrency world, released an investigation revealing that Dogecoin is “linked to illegal” activities. The investigation found that “the vast majority of this activity consists of scams, scams and Ponzi schemes,” but the meme coin is also responsible for serious crimes such as terrorism financing and the sale of “child sexual abuse materials (CSAM) ” was used.

The team also attached a pie chart to the report to make the breakdown of DOGE-based and related illegal activities clear. Terrorism, theft, fraud, and Ponzi schemes made up the largest part of the table, while malware came in second. Other illegal activities depicted in the chart include organized crime, providers of child sexual abuse material and right-wing extremism.

A representation of the cryptocurrency Dogecoin is seen in this image dated November 29, 2021. Photo: Reuters / DADO RUVIC

The report cites that in July 2021, the National Bureau for Counter Terror Financing of Israel identified 84 crypto addresses “believed to be controlled by HAMAS or otherwise used for terrorist activities.” These said addresses include DOGE addresses that appear to have received $40,235.

Hamas is a Palestinian Sunni Islamic fundamentalist nationalist militant organization that governs the Gaza Strip.

Elliptic also discovered “several dark web markets – including those selling drugs and stolen data – that accept Dogecoin as payment,” including the infamous archetype – one of the dark web’s drug markets. Analysts also found several malware campaigns aimed at stealing and using DOGE addresses.

“To date, the Doge address used by Cliptomaner has raised nearly $29,000, demonstrating the potential profitability of these campaigns — especially when considering a wide range of assets,” the report reads. Cliptomaer is malware that hijacks computers to mine cryptocurrencies.

Dogecoin has come a long way since its release in December 2013 and is now considered a major crypto asset. DOGE was trading up 3.64% at $0.06553 with 24-hour volume of $461,708,467 as of 11:13 p.m. ET Thursday based on the latest data from CoinMarketCap.

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