The crypto industry has been plagued by illegal activities for far too long. But one Israeli startup, Xplorisk, is on a mission to change that. By enhancing transparency, they aim to prevent money laundering, uncover illegal trading activities, and minimize any illicit use of crypto for financing terrorist activities.
According to reports, there are allegations that terror organizations are utilizing Iranian banks to fund thousands of crypto wallets. These entities have facilitated the movement of billions of dollars, allegedly without significant response from global legal authorities.
This sizable sum of money is being used to finance terrorism-related activities.
One example of a cryptocurrency platform is Nobitex, which boasts a user base exceeding 5 million. Notably, the platform openly states on its website that it permits Iranians to invest in cryptocurrencies, even under existing sanctions.
The realm of illegal financial activities associated with terrorism funding is dynamic. These funds often circulate through unregistered cryptocurrency platforms, adding a layer of complexity to monitoring and tracking.
It is widely acknowledged that these channels are vulnerable to money laundering and exploited by terrorist organizations and countries to fund acts of terror.
Xplorisk operates within the FinSec incubator, a collaboration between MasterCard and Enel X that claims to have successfully identified over 5,000 wallets linked with instances of terrorism and money laundering. The illicit actors use strategies such as small transfers, temporary wallets, and shifting the focus to social media donation campaigns to create a smokescreen, along with other tactics to avoid detection and capture.
Mitigating illicit crypto trading and transactions is a complex challenge that requires effective and strong regulation. It is crucial to prioritize the implementation of proactive regulatory controls, foster further collaboration between the private and public sectors, and utilize advanced technologies and methods.
Xplorisk, specializing in Operationalizing Web3 Risk Mitigation, ensures organizations and government entities complete visibility and control Web3 environments, 24/7, safeguarding assets and preventing illicit financial activities. The team’s methodologies have been successful on Web 2.0, and will now apply them to Web3.