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Dogecoin gaining popularity for illegal activities, Elliptic report says

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The popular meme-cryptocurrency Dogecoin (DOGE) is increasingly associated with several illegal activities such as terrorist financing, Ponzi schemes, and child sexual abuse. new Elliptic report.

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The blockchain analytics company said in a report that the meme coin popularized by Elon Musk has become a popular choice for attackers to facilitate millions worth of transactions.

While the vast majority of this activity consists of scams, scams, and Ponzi schemes, it also includes the most serious types of crime, including the financing of terrorism and the sale of child sexual abuse material (CSAM).

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In July 2021, Israel’s National Bureau for Combating the Financing of Terrorism issued an order for the confiscation of 84 crypto addresses believed to be linked to the Hamas group. One of those wallets contained $40,235 in Dogecoin.

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In addition, the analytics firm also discovered that a small but growing number of CSAM providers on and off the dark web are now receiving bitcoin. Elliptics only found $3,000 in Dogecoin, which is a small amount.

But he warned that this could be indicative of a growing “appetite for criminals to use a wide range of cryptoassets to evade notification.”

Darknets Accept Dogecoin

Several darknet marketplaces and malware campaigns also accept Dogecoin. Elliptics has identified dark web services such as Just-Kill that still accept Dogecoin while others no longer accept it.

In addition to terrorists, far-right extremist groups also seem to have taken a liking to cryptocurrencies, including Dogecoin. These groups, far-right blogs, news and video sharing platforms are using Dogecoin to raise funds when they can’t use traditional methods.

Infowars is one such website. A far-right anti-globalism news site has raised over $1,700 in Dogecoin.

The revelation is similar to the Financial Action Task Force’s revelations last year about far-right groups using cryptocurrencies such as bitcoin and privacy coins.

However, Ponzi schemes, theft and fraud appear to be the largest illegal use of Dogecoin. Elliptics claims to have identified over 50 cases of criminals cashing out millions of dollars in Dogecoin.

Popular examples include the alleged theft of $119 million in Dogecoin linked to a Turkish Ponzi scheme last year. In 2020, the Chinese government also confiscated over $20 million in DOGE under the $6 billion PlusToken Ponzi scheme.

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