A new study that was published by means of elliptical states that the meme-coin dogecoin (DOGE) is widely used within the criminal circle, and even by terrorists. Perhaps there were some snags in the enormous increase in popularity of the crypto over the past year.

Fraud and Scams with Dogecoin

The study highlights that the main way Dogecoin is used in crime is related to scams, pyramid schemes and financial fraud. Elliptic claims to have identified more than 50 such cases involving several hundred million dollars stolen and laundered around the world.

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For example, the Chinese government has seized more than $20 million worth of DOGE from PlusToken, a fraudulent organization that managed to embezzle $6 billion in cryptocurrencies. In addition, $120 million was linked to a Ponzi fraud that operated in Turkey in 2021.

Heavier crime and dogecoin

That’s not all, however. According to Elliptic, it goes much further than these “minor crimes.” For example, dogecoin also appears as a means of payment in more serious criminal cases, including the financing of terrorism.

“While the vast majority of this activity consists of fraud, scams and Ponzi schemes, it also encompasses the most serious forms of crime, including terrorist financing and child sexual abuse material (CSAM) providers.”

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Terrorists are increasingly adept at Dogecoin. An “increasing adoption” of the use of cryptocurrency to fund these activities. In July of last year, an Israeli government agency identified several more crypto addresses linked to Hamas, some of which had more than $40,000 in DOGE on its balance sheet.

Finally, DOGE has gained popularity among extremist groups. When boycotted or cannot be financed with traditional means of payment, these groups turn to using cryptocurrencies, with dogecoin being one of the most popular.

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