According to a new report by the blockchain analysis firm, the meme coin has been increasingly adopted around the world as a means of payment. Unfortunately, it has also been used in various illicit activities.
Elliptic notes, “While the vast majority of this activity consists of fraud, scams and Ponzi schemes, it also includes the most serious types of crime, including terrorist financing and purveyors of child sexual abuse (CSAM) material.”
Dogecoin being used in varied crimes
The study highlights that the main way Dogecoin has been used in crime is related to scams, pyramid schemes and financial fraud. Elliptic claims to have identified more than 50 such cases, with “hundreds of millions of dollars” being stolen and embezzled around the world.
For example, the Chinese government seized more than $20 million in DOGE from PlusToken, a fraudulent scheme that moved $6 billion in cryptocurrencies. Additionally, $120 million was linked to a Ponzi scheme operating in Turkey in 2021.
Terrorists and DOGE
Terrorists are also increasingly adept at Dogecoin. Despite the financial transactions being much smaller, an “increasing adoption” of the use of cryptocurrency to finance these activities was observed. In July of last year, an Israeli government office identified several crypto addresses linked to Hamas, some containing more than $40,000 in DOGE.
Elliptic also points to a “small and growing number” of child pornography providers that accept cryptocurrency as a form of payment. While the amount received in the asset is around $3,000, this has generated yet another red flag about the use of the token.
Finally, DOGE has been joined by other extremist websites and groups. When boycotted or unable to be financed by traditional means of payment, they turn to the use of cryptocurrencies, with the memecoin being one of the most sought after.
Dogecoin falls again
DOGE even managed to make good price jumps in recent days. This came after Elon Musk said he had bought more of the asset during the downturns and would continue to support the project.
However, the price of DOGE fell again this Wednesday, following the general fall of the crypto market. At the close of the day, DOGE had accumulated a 7.8% devaluation in the last 24 hours, trading at $0.06, according to CoinGecko.