Over time, Argentina has tracked several terror funding activities. It is said that the Financial Information Unit of Argentina has flagged the use of the nation’s crypto exchanges, believed to be linked to Hay’et Tahir Al-Sham, a terrorist group having ties with Al Qaeda.
UIF of Argentina found during the investigation that two individuals, a Russian citizen living in Argentina and one other foreign national identified by the United States Treasury Department and the Israeli National Bureau for Counter Terror Financing, could be collaborating with this infamous group.
According to the available information, Hay’ et Tahir al-Sham is linked to terrorism through its origin, activities, and international designation. Despite its public distancing from al-Qaeda in 2016, HTS retains an extremist agenda seeking to impose an Islamic state through violence and terror.
Hay’ et Tahir al-Sham is a labelled terrorist group by the United States, United Nations, and European Union due to its militant operations and human rights abuses, including the unlawful holding of journalists and others.
Argentina’s UIF acted upon the tip from sources
It is worth noting that the agencies clarified that there was no clear indication of the funds to be used to fund terror activities inside Argentina’s territory, yet the move came to tackle any risk of international terror financing.
Regional sources aware of the action said that, “ As a 1st step, it was decided to freeze all wallets and fund movements that he had made or attempted to make, and from now on other measures will be intensified with the intervention of the justice system.”
It is noteworthy that the frozen wallets were reportedly used to funnel funds through crypto transactions, including ransomware payments and dark web activities.
The UIF of Argentina has flagged these as a part of HTS’s global fundraising network, often using cryptocurrencies to maintain anonymity to back terrorist operations.
Usage of crypto by terrorist organizations & illicit groups is growing
Over time, the use of crypto and digital assets has grown among notorious terrorist organizations, dark web operators, and other malicious actors. The surge is driven by the features of anonymity, decentralization, and the ability to facilitate cross-border transactions.
Unlike fiat currency or national currency, crypto operates with a central entity, allowing groups to bypass regulated financial systems and sanctions.
After the popularity of digital assets, the hassle of cross-border payments has now become easier, opening wider paths for terrorist groups to gather funds for their terror and crime from different regions of the world.
