Could there be blood on the Shiba Inu’s smiling muzzle that is Dogecoin’s mascot? This cryptocurrency has emerged as the primary conduit for the transfer of illicit funds, according a June 22 analysis from Elliptic Connect. Scams, fraud, the sale of materials containing child sex abuse, terrorism, and Ponzi schemes are all acceptable. This illegal financial flow has a total value of several million dollars.
Cryptocurrency bandits
It appears that using Dogecoin is better the more violent the offense. Come on, they say that retail is where the devil dwells, and Dogecoin appears to support that statement. Elliptic’s study does, in fact, provide numerous examples to support its assertions. We may point to the Ponzi scheme Plus Token, which resulted in the Chinese government seizing $20,000,000. This time a Turkish Ponzi scam would have been used to steal up to 119 million. Just for Ponzi schemes and related frauds, there are around 50 examples documented in total.
According to reports, in July 2021, the terrorist organization Hamas sent $40,235 through DOGE addresses. True, the study mentions additional names as a bridgehead for transactions tied to terrorism, including Tether and bitcoin. There have been around 3.3 million transactions on bitcoin. Terrorists smuggled $4.1 million on Tether. DOGE would also be the preferred currency for those who purchase or sell the cliptomaner program, which is frequently used to break into cryptocurrency wallets and steal cryptocurrency. Even the sexual exploitation of minors will have been checked off the list. The investigation report does certainly state that DOGE was paid $3,000 for a document pertaining to child sexual abuse. If DOGE, which ranks tenth in terms of market capitalization, is at the center of many transactions in the cryptocurrency market, it is also true on the darknet, where it is utilized as a form of payment for drugs and stolen papers.
DOGE, a bad coin?
Should we assume DOGE is a cryptocurrency used just for esoteric transactions? The opposite is true in every way. Additionally, it’s important to keep in mind that not all thieves employ DOGE. On the contrary, they used more of the anonymous cryptocurrency Monero and bitcoin. Dogecoin’s rising popularity, which is partly due to the support of its “godfather,” is the reason why it has started to be exploited by various criminals.
Elon Musk, the CEO of Tesla, has consistently supported Dogecoin since 2021, which has undoubtedly contributed to its unstoppable development. He only sent one tweet. According to the Elliptic report, “Transparency about the ownership of Dogecoin and its use has become increasingly vital for retail investors and exchanges. A larger need to authenticate currencies has arisen as a result of Dogecoin’s significant growth in usage and value among prominent organizations, including Elon Musk’s SpaceX. currency origins and payment counterparties.
A lawsuit was recently brought against Musk by an investor who claimed that he had used his tweets to manipulate the price of DOGE. He demands the stunning figure of 258 billion dollars in damages from Elon Musk.
