On June 22, Elliptic Connect, a cryptocurrency-based financial crime specialist, released Blockchain-Analytics providers, research showing that Dogecoin (DOGE)Elon Musk’s favorite cryptocurrency, used by criminals to commit illegal acts.
According to Elliptic, Dogecoinis is used to fund fraud, scams, Ponzi schemes and other more serious crimes such as terrorism and child sexual abuse material.
Elliptic has identified millions of dollars worth of Dogecoin transactions related to illegal activities, including terrorist financing and child sexual abuse material (CSAM) providers. https://t.co/a4x5pD1nuC#doge
– elliptical (@elliptical) June 21, 2022
According to Elliptic’s report, criminals have moved millions of dollars into DOGE through theft, fraud, and pyramid schemes. These include Plus Token, where $20 million worth of DOGE was seized, and another alleged $119 million DOGE theft in China linked to a Turkish Ponzi scheme.
Although millions of dollars are moved in Dogecoin, most illegal activities are not as serious as terrorism financing or buying child sexual abuse material – although those do exist, too.
For example, the estimated value of terrorism financing moved with DOGE is just over $40,000, while the total value of child sexual abuse material is less than $3,000. This shows that criminals are using Dogecoin to evade authorities who rely on other more established ones cryptocurrencies like bitcoin have focused. Ethereumor Monero.
As for the dark web, Dogecoinis accepts on several marketplaces, such as Archetype, which focuses on selling drugs, Just-Kill, which is used as a validator for stolen credit cards, and others, which support the illegal purchase and sale of weapons and stolen goods support financially.
Elliptic also reported an increase in the use of malware or computer viruses to steal Dogecoin from users’ wallets. However, it noted that the destination for those funds received nearly $29,000, a minimal number given the millions of dollars in cryptocurrency stolen using similar tools.
Dogecoin is no longer considered a meme coin
A curious fact is that Dogecoin is no longer considered a meme currency, according to Elliptic thanks to the promotion Elon Musk has made through his social media accounts, recalling that the electric car billionaire doubled down again a few days ago has his support for DOGE in the World Economic Forum.
And yet, even if Dogecoin is indeed being used for illicit activity, the reported numbers are extremely small when considering its total value, which CoinMarketCap says is more than $8,353,034,906 despite the drop.
Source: Crypto News Deutsch