Crypto's Anonymity Aids Terrorists But Remains Small Part of Illicit Financing

Cryptocurrency provides pseudonymous transactions, allowing militants to move funds across borders. But crypto is just one of many ways groups finance activities.

Blockchains record transactions permanently, but users can obscure tracks. It's hard to link wallets to people without additional info.

Terrorist financing is a small part of overall illicit crypto activity. Most terrorist financing still uses fiat money.

In 2022, crypto crime hit $20B, but that excludes non-crypto crimes funded by crypto. Theft via cyber attacks also funds groups.

Crypto scams are rising, causing some banks to limit customer crypto access. But crypto's role in terrorism remains limited compared to other finance methods.