On June 22, Elliptic Connect, a blockchain analytics provider specializing in cryptocurrency-based financial crime prevention, released an investigation showing that Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE), is being used by criminals. to commit illegal acts.
According to Elliptic, Dogecoin 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 linked to illicit activities, including terrorist financing and child sexual abuse material (CSAM) suppliers. https://t.co/a4x5pD1nuC#doge
— Elliptic (@elliptic) June 21, 2022
Criminals use DOGE as an alternative to BTC and ETH
According to the Elliptic report, criminals moved millions of dollars in DOGE through theft, scams, and Ponzi schemes. These include Plus Token, in which $20 million of DOGE was seized, and another alleged theft of $119 million in DOGE in China linked to a Turkish Ponzi scheme.
However, despite the millions of dollars being moved into Dogecoin, most illicit activities are not as serious as financing terrorism or buying child sexual abuse material — although those do exist.
For example, for terrorist financing, the estimated value moved with DOGE was just over $40,000, while for child sexual abuse material, the total was less than $3,000. This suggests that criminals are using Dogecoin to evade authorities that focus on other more established cryptocurrencies such as Bitcoin, Ethereum or Monero.
As for the dark web, Dogecoinis is accepted in multiple marketplaces such as Archetype, which focuses on drug sales, Just-Kill, which is used as a validator for stolen credit cards, and other marketplaces that facilitate the illegal sale of weapons and stolen goods.
Elliptic also reported an increase in the use of malware or computer viruses to steal Dogecoin from user wallets. However, it noted that nearly $29,000 had been received at the destination address of the funds, a minimal figure considering the millions of dollars in cryptocurrency stolen using similar tools.
Dogecoin is no longer considered a meme coin
A strange fact is that according to Elliptic, Dogecoin is no longer considered a meme currency due to promotions by Elon Musk through his social media accounts, he recalled that a few days ago, the electric car billionaire Billionaire is doubling down on his support for DOGE at the World Economic Forum again.
However, even if Dogecoin is indeed being used for illicit activities, the reported number is still very small considering its total value, albeit down, at more than $8,353,034,906, according to CoinMarketCap.
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