US authorities once again have shown concern over the use of bitcoin in illegal activities in the country. Hany Veletanlic, 36, was found guilty for selling dangerous weapons to terrorists in Sweden and was sentenced to seven years in prison for violating Arms Export Control Act.
Authorities are concerned over the use of bitcoin in terror financing.
Bitcoin provides users with pseudo-anonymity, whose advantage is being taken by extremists all over the world to fund their illicit activities. Law enforcement around the globe is showing concern over the use of cryptocurrencies in terror financing as they can be hard to trace back. Earlier, a blockchain analysis firm, Chainalysis, reported that over $2.8 billion in bitcoin tainted with the crime were laundered via crypto exchanges.
US officials warned the use of bitcoin in domestic terrorism.
Earlier, the US House Financial Services Committee warned that bitcoin and other cryptocurrencies are being used to fund domestic terrorism. US Congressman, Brad Sherman of California, who once called for a blanket ban on bitcoin, said that cryptos’ security and secrecy allow domestic terrorists to fund their operations in the US. Members of the committee noted several incidents where neo-Nazi members used bitcoin donations to carry out their activities.
