Department Of Justice Seizes Bitcoin, Websites From Terror Groups

Enlarge this image

In an image released by the Department of Justice, a group solicits funds for weapons by asking for bitcoin. The Trump administration says al-Qaida and affiliated groups have used such donations to fund terrorism.

Department of Justice

hide caption

toggle caption

Department of Justice

The Two-Way
Long Island Woman Charged With Using Bitcoin To Launder Money To Support ISIS

The fraudulent face masks involved a cyber scam, but not necessarily cybercurrency. The department described «a scheme by Murat Cakar, an ISIS facilitator who is responsible for managing select ISIS hacking operations, to sell fake personal protective equipment via FaceMaskCenter.com.

The Two-Way
Justice Department Announces ‘Largest Darknet Takedown In History’

«The site administrators offered to sell these items to customers across the globe, including a customer in the United States who sought to purchase N95 masks and other protective equipment for hospitals, nursing homes, and fire departments, the statement says.

The government seized the websites involved, and says it is investigating whether the fraud resulted in any funds being sent to support terror efforts; the websites may also have been used for money laundering, the administration suggests.

Goats and Soda
Blockchain Could Be A Force For Good. But First You Have To Understand It

The other two cases involved al-Qaida and Hamas soliciting cryptocurrency donations, either by appealing to their own supporters or by impersonating charities.

Cryptocurrency’s appeal lies, in part, in a potent mix of transparency and anonymity. All transactions are documented in a blockchain, a kind of ledger or record-keeping system that is visible to the public. But instead of being tied to a person’s name or identity (like money in a traditional bank account), the funds are only tied to strings of numbers.

This layer of pseudonymity has made cryptocurrency like Bitcoin popular for some criminal transactions. But, the Justice Department wrote in the newly unsealed court documents, «it is possible to determine the identity of an individual involved in a [bitcoin] transaction through several different tools that are available to law enforcement.

Criminal Justice Collaborative
Coaxing Cops To Tackle Cybercrime? There’s An App For That

If someone exchanged bitcoin for U.S. dollars using a U.S.-based currency exchange, for instance, they might have revealed their identity in connection to that transaction.

Software that looks for «clusters of transactions could then identify other bitcoin possessed by the same individual, according to the filing.