Rise of Tron in Crypto Transfers
Tron, a rapidly growing cryptocurrency network, has emerged as the primary platform for crypto transfers associated with groups like Hamas and Hezbollah, surpassing its larger rival, Bitcoin. A Reuters analysis reveals that Tron’s faster transaction times, lower fees, and stability have contributed to its increasing popularity among organizations designated as terrorist by multiple countries, including the EU, Israel, and the US.
Israeli Seizures Reflect the Trend
Israeli security services’ crypto seizures since 2021 indicate a significant shift in focus from Bitcoin to Tron wallets. The Israeli National Bureau for Counter Terror Financing (NBCTF) froze 143 Tron wallets between July 2021 and October 2023, connected to “designated terrorist organizations” or involved in “severe terror crimes.” Tron’s appeal is attributed to its efficiency, prompting organizations like Hamas to prefer it for their crypto transactions.
Escalation of Scrutiny Post Hamas Attacks
Following recent attacks by Hamas, Israel intensified its scrutiny of the group’s financing activities. Notably, almost two-thirds of Israel’s Tron seizures, 87 in total, occurred in 2023. These included wallets linked to Hezbollah and the Palestinian Islamic Jihad. The majority of Hamas-related wallets were associated with a Gaza-based money exchange company named Dubai Co. For Exchange.
Major Crypto Account Seizure
Israel’s most extensive known crypto account seizure occurred weeks after the Hamas assault, involving around 600 accounts connected to Dubai Co. Israel deemed the group a terrorist organization for its alleged support to Hamas, freezing funds amounting to tens of millions of dollars annually. Tron users, among those affected, denied connections to terrorist groups, emphasizing their involvement in crypto trading for business or personal purposes.
Challenges in Crypto Accountability
Estimates of funds reaching proscribed groups through crypto remain unreliable due to difficulties in determining the intended recipients of funds sent to seized wallets. While Tron spokesperson Hayward Wong stated that technologies could be used for “questionable activities,” he clarified that Tron lacks control over users and disassociates itself from groups identified by Israel.
Tether’s Dominance on Tron Network
Despite Tron’s prominence, Tether, the third-largest cryptocurrency with a market value of $89 billion, dominates the Tron network. Tether, known as a stablecoin, is backed by reserves and actively cooperates with law enforcement to trace and freeze tokens utilized for illicit purposes. Tron’s founder, Justin Sun, faced legal challenges from the US Securities and Exchange Commission in March, alleging artificially inflated trading volumes and unregistered security sales, which Sun denies.
SOURCE: Ref Image from Reuters
Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.