A recent report by TRM Labs has brought to light an escalating adoption of cryptocurrencies among ISIS and its supporters across Asia. TRM Labs’ investigation over the past year corroborates this trend, revealing pro-ISIS networks in Tajikistan, Indonesia, Pakistan, and Afghanistan using digital assets to facilitate their operations, with Tether (USDT) on the Tron network (TRX) emerging as their preferred choice.
In Tajikistan, various pro-ISIS groups were found utilizing cryptocurrency, including for recruitment efforts for ISIS’s Afghanistan affiliate (ISKP). A year-long active fundraising campaign received approximately USD 2 million in USDT on Tron in 2022. Notably, TRM Labs alerted the exchange used by the group, leading to the disruption of their activities and the apprehension of a senior ISIS fundraiser.
Under “Cryptocurrency Facilitating Pro-ISIS Fundraising Campaigns,” Indonesia witnessed over USD 517,000 sent in 2022 via a local exchange to addresses linked to pro-ISIS fundraising campaigns in Syria. These campaigns purportedly aimed to support and aid ISIS families held in Syrian camps, with all transactions conducted using USDT on Tron.
Similarly, a media unit connected to ISIS’s Pakistan affiliate (ISPP) began promoting its ability to accept donations in the latter half of 2022. Addresses controlled by the group amassed a total volume of approximately USD 40,000 over the past year, exploiting the earthquakes in Turkey and Syria in February 2023 to raise funds.
In Afghanistan, the al-Azaim Foundation for Media Production (al-Azaim), serving as the media unit of ISIS’s affiliate (ISKP), was identified as another entity using cryptocurrency to fund operations and receive backers’ support. TRM Labs identified on-chain links between addresses controlled by al-Azaim and those controlled by the Pakistan-based group.
These case studies across Asia have a shared characteristic: on-chain links to pro-ISIS fundraising campaigns in Syria, a significant cryptocurrency hub for ISIS and its supporters.