Israeli startup takes aim at terrorist funding.

Israeli start-up Xplorisk is on a mission to reduce illicit activities in the cryptocurrency market by enhancing transparency. This includes preventing money laundering, uncovering illegal trading activities, and minimising the use of cryptocurrency for funding terrorist activities. Notably, there are allegations that terror organisations are leveraging Iranian banks to fund thousands of crypto wallets, which are being used to finance terrorism-related activities.

• One well-known crypto platform, Nobitex, has openly admitted to allowing Iranians to invest in cryptocurrencies despite current sanctions.
• Investigations suggest that billions of dollars are being moved through unregistered cryptocurrency platforms, making it difficult to monitor and track these transactions.
• Xplorisk is actively working to combat these illicit actions by working within the FinSec incubator, a collaboration between MasterCard and Enel X.
• The company claims to have successfully identified more than 5,000 wallets linked to terrorism and money laundering.

It is widely acknowledged that unregistered crypto platforms are vulnerable to exploitation by terrorist organizations seeking to fund their activities. They often use strategies such as small transfers, temporary wallets, and shifting focus to social media donation campaigns to avoid detection.

Mitigating these illegal activities requires substantial effort and collaboration between public and private sectors. Xplorisk, which specializes in “Operationalizing Web3 Risk Mitigation,” provides 24/7 visibility and control over Web3 environments. It works to safeguard assets and prevent illicit financial activities, applying successful methods from Web 2.0 to Web3.

Public and private sectors need to prioritize implementing proactive regulatory controls, fostering collaboration, and utilizing advanced technologies and methods. With companies like Xplorisk actively combatting the misuse of cryptocurrencies, there is hope of making it that much harder for terrorist organisations to achieve their aims.