Elliptic Reveals How Criminals Use Dogecoin

On June 22, Elliptic Connect, a blockchain analytics supplier specializing in cryptocurrency-based monetary crime prevention, printed an investigation displaying that Dogecoin (DOGE), Elon Musk’s favourite cryptocurrency, is being utilized by criminals to commit illicit acts.

According to Elliptic, Dogecoin is getting used to finance frauds, scams, Ponzi schemes, and different extra severe crimes like terrorism and youngster sexual abuse materials.

Elliptic has recognized tens of millions of {dollars} value of Dogecoin transactions linked to illicit exercise together with terrorism financing and distributors of kid sexual abuse materials (CSAM). https://t.co/a4x5pD1nuC#doge

— elliptic (@elliptic) June 21, 2022

Criminals Use DOGE Instead of BTC and ETH

Per Elliptic’s report, criminals have moved tens of millions of {dollars} in DOGE via thefts, scams, and Ponzi schemes. These embrace Plus Token, through which $20 million in DOGE have been seized, and one other alleged $119 million DOGE theft in China linked to a Turkish Ponzi scheme.

However, though tens of millions of {dollars} are being moved in Dogecoin, most illicit actions are usually not as extreme as terrorist financing or the acquisition of kid sexual abuse materials —regardless that these additionally exist.

For instance, for terrorism financing, the estimated worth moved with DOGE quantities to only over $40,000, whereas for youngster sexual abuse materials, the overall is lower than $3,000. This exhibits that criminals are utilizing Dogecoin to evade authorities who’ve centered on different extra established cryptocurrencies like Bitcoin, Ethereum, or Monero.

As for the darknet, Dogecoin is accepted in a number of marketplaces, corresponding to Archetype, which focuses on drug gross sales. Just-Kill is used as a verifier for stolen bank cards and others that promote unlawful shopping for and promoting of weapons and stolen items.

Elliptic additionally reported a rise in the usage of malware or pc viruses to steal Dogecoin from customers’ wallets. However, it famous that the vacation spot handle for these funds had obtained nearly $29,000, a minimal determine contemplating the tens of millions of {dollars} in cryptocurrencies which have been stolen with comparable instruments.

No Longer Considered a Meme Coin

A curious reality is that, in response to Elliptic, Dogecoin is not considered as a meme foreign money due to the promotion that Elon Musk has made via his social media accounts, recalling that a number of days in the past, the electrical automotive billionaire as soon as once more doubled down on his assist for DOGE within the World Economic Forum.

And but, even when certainly Dogecoin is getting used for illicit actions, the reported figures are extraordinarily small when bearing in mind its whole worth, which regardless of the drop, quantities to greater than $8,353,034,906 in response to CoinMarketCap.