Unveiling the crypto-terror nexus: law enforcement intelligence challenges against terrorist financing
| Date | 08 July 2024 |
| Pages | 403-415 |
| DOI | https://doi.org/10.1108/JFC-12-2023-0330 |
| Published date | 08 July 2024 |
| Author | Michael Kushelevitch |
Unveiling the crypto-terror
nexus: law enforcement
intelligence challenges against
terrorist financing
Michael Kushelevitch
Department of Political Science Government and International Affairs,
Tel Aviv University, Tel Aviv, Israel
Abstract
Purpose –This study aims to explore the impact of cryptocurrency on intelligence activities by law
enforcement agencies, focusingon the changing landscape due to its exploitation by terrorist organizations.
Investigatingthe dual nature of cryptocurrency as a global paymentsystem and a potential threat to national
security, the purpose is to understandhow law enforcement adapts its strategies in response to this evolving
challenge.
Design/methodology/approach –The research uses a comprehensive approach by analyzing the
integrationof research and collectionstages within the intelligencecircle, particularlyemphasizing blockchain
analysis. By examining the actions of law enforcement authorities in the case study of Hamas’crypto
fundraising campaign, the study highlights how open-source information, accessible through blockchain,
allows for strategic collaborationbetween law enforcementauthorities and specialistcompanies in the field of
intelligence analysis. This methodology enables law enforcement to enhance their intelligence gathering
capabilitiesto trace illicitactivity by terroristorganizations,leading to a successfulseizure of crypto funds.
Findings –The findings reveal a symbiotic relationship between terrorist organizations and the crypto
space, with the latterbecoming an attractive means for financing activities.Law enforcement, in response, has
evolved its intelligencepractices, combining collection and research to trace and crackdown on illicit crypto
transactions.
Originality/value –The study sheds light on the dynamic challenges faced by law enforcement in
maintaining aneffective intelligence response to the ever-evolvingmethods used by terrorist organizationsin
using cryptocurrencies.
Keywords Intelligence, Crypto, Terror, Financing, Enforcement
Paper type Viewpoint
Introduction
One of the main challenges of counter-terrorismstrategies is the discovery and disruption of
the financing capability of terrorist organizations. Terrorist financing is based on several
means of transferring money around the world, such as the traditional banking sector,
transferring cash through couriers, and also advanced services such as digital currencies,
which are part of a growing sector in recent years called “shadow banking”that poses a
significant challengeto the authorities trying to fight terrorist financing (DOT, 2022a).In the
framework of this paper, I will use the term “crypto”as a term representing an asset that is
called by a variety of names, such as digital currencies,virtual currencies, cryptocurrencies
and more. Since law enforcement authorities developed a variety of methods to deal with
terrorist financing, all of which are based on increasing transparency in the financial
Crypto-terror
nexus
403
Journalof Financial Crime
Vol.32 No. 2, 2025
pp. 403-415
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-12-2023-0330
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
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