[2015-11-25] ISIS parks its cash in Bitcoin, experts say

[ezak]

ISIS parks its cash in Bitcoin, experts say



Just days after the hacker group Anonymous pledged to hunt down Islamic State members and launch cyberattacks against their accounts, a separate group of techies claims it has identified a key funding avenue for the terror network – bitcoin accounts.

Ghost Security Group, a collective of computer “hacktivists,” says it has located several bitcoin accounts that ISIS uses to fund operations. One account contained $3 million worth of bitcoin, a GhostSec member told Michael K. Smith II, a co-founder of Kronos Advisory, a national security advisory firm.

http://www.foxnews.com/tech/2015/11/25/isis-parks-its-cash-in-bitcoin-experts-say.html

[Slark]

"Government officials have become increasingly concerned about these unregulated financial systems, and the U.S. is starting to apply money laundering regulations to cyber currencies.
Firms that issue or exchange bitcoin are required to maintain records and report transactions of more than $10,000." - Thank ISIS. We appreciate it.

"New York recently enacted a regulatory framework, and California will start governing the exchanges next year" - Brace yourself, another BitLicense incoming.

However there is some positive news as well: "There were 1.3 million bitcoin users last year, according to Juniper Research. It estimates there will be 4.7 million users by the end of 2017."

[tiggytomb]

I think an important quote is

"A GhostSec member said ISIS’ virtual currency amounts to between 1 percent and 3 percent of its total income – between $4.7 million and $15.6 million. The Treasury Department estimates that ISIS generates between $468 million and $520 million annually. The terror group’s primary sources of revenue are robbery, extortion, oil sales, ransom payments and overseas donations, according to the Treasury Department."

The overwhelming majority of the funds is fiat.

[Casdinyard]

I think an important quote is

"A GhostSec member said ISIS’ virtual currency amounts to between 1 percent and 3 percent of its total income – between $4.7 million and $15.6 million. The Treasury Department estimates that ISIS generates between $468 million and $520 million annually. The terror group’s primary sources of revenue are robbery, extortion, oil sales, ransom payments and overseas donations, according to the Treasury Department."

The overwhelming majority of the funds is fiat.

The authority should concentrate on tracking the fiat transaction of the IS, not bitcoin. It will distract its attention.