Donald Trump’s return to the White House promises many things: mass evictions, an end to inflation and perhaps the first crypto-friendly presidency, which is widely expected to ease regulations on this emerging technology.
While this is music to the ears of investors and crypto enthusiasts who have poured money into his campaign, there are other unlikely winners for such policies, including far-right extremists and terrorist organizations who use crypto to finance their goals.
“Any easing of crypto regulations (or, frankly, the appearance of easing) is likely to further increase the use of crypto by extremists,” says Jessica Davis, a former analyst at the crypto agency. Canadian spy and president of Insight Threat Intelligence, a consulting firm. company specializing in the financing of terrorism.
“While the integration of crypto into the traditional financial system is not a nefarious goal, the steps taken to achieve this, without appropriate regulation and compliance with international terrorist financing standards, will allow terrorists to collect and move funds more easily for their purposes. »
Already on Election Day, the Base, a designated neo-Nazi terrorist group under a years-long FBI investigation, was soliciting cryptocurrency donations for its paramilitary training in the United States.
“Supporters! At the base, we have received donations and we are very happy because we are purchasing blank cartridges and blank firing adapters for AR-15s so that members can train in small unit tactics,” says the message to one of the group’s encrypted email accounts.
The message continued with a list of supplies suitable for a military platoon: “We need additional funds to help purchase over 5.56 blanks, training courses, Powerfilm USA foldable solar panels to charge the batteries on the terrain, Carinthia Defense 4 sleeping bags, electronic earmuffs and microphones, crash helmets, GoPros, thermal optics and FPV drones in that order.
“We will be completely transparent in our purchases so you all know we are purchasing the equipment so we can train,” he said.
The base then announced a Bitcoin wallet, which has not yet accumulated funds, and a Monero address – a privacy-focused cryptocurrency. It is also well known that criminal organizations change portfolios to escape law enforcement and intelligence surveillance.
The Russia-based group’s leader had offered over the summer to pay a second-in-command up to $1,200 a month in crypto and other funds to form the group in the United States in his place, suggesting that a previous fundraiser had been successful.
But terrorists and extremists using crypto are nothing new: In recent years, everyone from American neo-Nazis to Hamas have appealed for anonymous donations via crypto.
“We have a lot to do over the next few weeks, any support is extremely helpful,” the Blood Tribe leader wrote in a 2023 post asking for money to fund a possible march in Florida waving cross flags gamified. The same article also advertised Bitcoin and Monero wallets.
Davis said: “Over the past five years, there has been a steady increase in the number of terrorism cases involving cryptocurrencies. »
“Far-right groups and actors have, in particular, been quick to embrace cryptocurrency,” she said, adding: “They do so in part to avoid scrutiny from financial institutions, but also because cryptocurrency is often highlighted by far-right influencers. »
Davis noted that accelerationist terrorists, those who believe that acts of chaos will hasten the end of world governments, see something else: “(They) see cryptocurrency either as something that can help bring about the collapse of society, or as something that will survive. this collapse.
Unlike the new Trump administration, Joe Biden is wary of crypto, seeing it as a potential threat to national security. Its SEC and the Treasury Department have cracked down on crypto exchanges and companies for what they see as circumventing securities and anti-money laundering laws.
In contrast, Trump announced his own cryptocurrency business during the election season and has already named asset manager Howard Lutnick, a strong supporter of cryptocurrency, as the new head of the Commerce Department.
Mark Dwyer, extremism financing investigator at the ADL, said the private sector has done little so far to curb extremist financing, which includes the crypto space.
“Parts of the private sector have not responded for years,” he said. “There is no regulatory oversight of extremist financing that would encourage private sector actors to act. »
Bitcoin’s value has also exploded since Trump’s election victory, as he promised during the election campaign that he would establish a “strategic reserve” of the cryptocurrency.
Extremists already understand the appeal and use of crypto exchanges and how best to maximize their value, even going so far as to tell their followers how to exploit them.
“Don’t send us Bitcoin from exchanges like Coinbase,” wrote a publication affiliated with the former leaders of the Atomwaffen Division, a disbanded neo-Nazi group on several terrorist lists. “The sole purpose of Coinbase and other exchanges is to easily buy Bitcoin at a low price and then send it to your independent wallet to send to us.”
On the far right, some have already started using cryptocurrencies to avoid identifying themselves in transactions between them. On Telegram in August, a legal defense fund established for imprisoned white nationalist leader Robert Rundo called on supporters to send money.
“If you are concerned about credit card donations under your name,” the message reads, “below you will find the crypto addresses for Bitcoin, Ethereum, and Monero donations.”
Aside from legal funds, groups like Base and others ask for a myriad of reasons to send cryptocurrencies.
“Different entities have already requested cryptocurrency donations to allegedly pay for equipment, costs of creating and disseminating physical propaganda, web hosting, travel, legal assistance, and prisoner assistance” , said Joshua Fisher-Birch, analyst at the Counter Extremism Project. “Crypto is attractive to the far right because it is easy to create a wallet and solicit donations online.”
He said that while crypto’s anonymity was an obvious advantage, extremists who use it want to not be downgraded by traditional crowdfunding sites. This is why Monero, an alternative to Bitcoin with a higher degree of untraceability, has become the darling of cybercriminals and terrorism. similar groups.
“Monero also became popular with pro-Islamic State and ISIS-linked propagandists, who requested donations of Monero and posted advice on how to buy it,” he added.
