Transaction Monitoring (TRM) Labs, a blockchain intelligence company based in San Francisco and acknowledged by the World Economic Forum, has recently released a report in which the firm has disclosed the connections between the Islamic State Khorasan Province (ISKP) and ISIS-affiliated fund-collecting networks in India. ISKP, an Afghanistan-based terrorist organization, is reportedly utilizing the cryptocurrency Monero (XMR) to raise donations.
The ISKP terror group gained wide attention after the U.S. troops withdrew from Afghanistan.
The “TRM Labs 2025 Crypto Crime Report,” released on February 10th, focuses on illegal cryptocurrency transactions in the year 2024. As per the reports, the illegal transactions have decreased by 24% compared to the year 2023.
However, it also highlights the evolving tactics employed by terrorist organizations. Specifically, TRM Labs’ investigation revealed on-chain links between ISKP-affiliated addresses and clandestine fundraising campaigns in India.
The on-chain link is the component of the Chainlink network that operates directly on a blockchain, including smart contracts that handle data requests and further unites with off-chain oracles. The TRM report states that the ISKP has started collecting donations using Monero (XMR) currency.
According to news reports, the organization’s official media outlet launched its first donation drive promoting Monero, as announced in the publication Voice of Khorasan, produced by ISKP’s media unit, al-Azaim. Calls for donations in Monero have since become a regular feature of their fundraising efforts.Â
The report indicates that ISKP and other terror groups are increasingly favoring Monero due to its privacy features within the blockchain. As of now, Monero is valued at ₹19,017.77. This strong privacy tool helps to cover up the transactions.
However, the report highlights that the terrorist organizations will not rely on Monero currency for a long time due to its volatility and potential crackdowns, instead opting for more stable cryptocurrencies.
Even crime reports released by Chain Analysis have highlighted that cybercriminals are targeting stablecoins, and the stablecoin crime has increased by 63% in 2024 as compared to past years.
The findings also indicate that terrorist organizations are adapting and changing to enhance their ability to evade government and law enforcement agencies. As the government is advancing security against terror-linked financial networks, these groups have refined their tactics, techniques, and procedures (TTPs) to prevent their detection.
Additionally, there has been an increase in dependence on unknown wallets and cryptocurrency mixers. Online forums have become the main centers for sharing advice on the best practices and identifying services that provide the highest levels of protection.
Individuals are using fake proofs to avoid Know Your Customer (KYC) regulations that are imposed by exchanges, making it difficult for law enforcement agencies to track the illegal transactions.
However, Monero has gained attention for its advanced privacy features, which make transactions more difficult to identify, as compared to Bitcoin and other mainstream digital assets. This makes them an adorable choice for those who are involved in illegal financial activities.
Also Read: Maximum Crypto Crimes against Stablecoins: Chainalysis report
