The Islamic State (IS) transnational jihadist group has increasingly turned to cryptocurrency alongside traditional fundraising channels for finan

The Rise of Monero: ISKP’s Preferred Cryptocurrency for Terror Financing

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2024-10-08 12:00:05

The Islamic State (IS) transnational jihadist group has increasingly turned to cryptocurrency alongside traditional fundraising channels for financing its terror operations across the world. One of its lethal affiliates, IS-Khorasan Province (ISKP), has dominated the Afghanistan and South Asian terrorism landscape for over a decade, capitalising now on the more secure cryptocurrency in terms of privacy and safety protection, particularly Monero (XMR), to fund its global jihadist ambition. This tactical diversification from traditional sources and channels such as charity contributions, extortion, taxes, and ransom payments to more private, secured cryptocurrency donations presents formidable challenges for global counterterrorism efforts.

This Insight aims to highlight the role that virtual donations in cryptocurrencies play in supporting transnational jihadist organisations such as IS (IS Central), challenging previously held views on their role and prevalence within broader terrorism financing mechanisms. It examines the adaptive strategies in navigating the rapidly evolving digital landscape, mainly focusing on the increasing use of safer and private cryptocurrencies for fundraising. The Insight traces the rise of Monero as the preferred cryptocurrency for these activities, highlighting consistent public appeals for donations in Monero to support jihadist causes. It explores ongoing fundraising campaigns linked to ISKP, emphasising those in Central and South Asia.