- According to the Elliptic report, Dogecoin is enabling human trafficking among other fraud Ponzi schemes.
- The firm identified DOGE transactions in child sexual abuse amounting to approximately $3,000 globally.
A new report by Elliptic, a crypto risk manager, has revealed that Dogecoin (DOGE) is widely used for illicit activities. Yes, the Dogecoin supported by Elon Musk among other notable billionaires is reportedly aiding illicit activities.
Indeed, Satoshi predicted in the Bitcoin whitepaper, “a certain percentage of fraud is accepted as unavoidable.”
According to the Elliptic report, Dogecoin is enabling human trafficking among other fraud Ponzi schemes.
“Elliptic has identified millions of dollars worth of Dogecoin transactions connected to illicit activity. While the vast majority of this activity consists of fraud, scams, and Ponzi schemes, it also includes the most serious types of crime, including terrorism financing and vendors of child sexual abuse material (CSAM),” the report noted.
Elliptic report on Dogecoin
Reportedly, millions worth of Dogecoin has been transacted in what is identified as illicit activity. For instance, In July 2021, Israel’s National Bureau for Counter Terror Financing issued a seizure order against 84 crypto asset addresses believed to be controlled by Hamas. Interestingly, the report identified Dogecoin addresses, which had received a total of $40,235.
Nonetheless, the amount transferred in Dogecoin is mere sand in the ocean, putting in mind Bitcoin and Tether enabled approximately $3.4 and $4.1 million respectively, at least according to the report.
Among the notable vices that Elliptic highlighted was child sexual abuse. Notably, the firm searched both Darknet and clearnet for child sexual abuse material (CSAM).
Reportedly, Dogecoin was among the list of crypto assets accepted as a form of payment for child sexual abuse. Precisely, the firm identified DOGE transactions in child sexual abuse amounting to approximately $3,000 globally.
Elliptic noted that it provided investors with Dogecoin transparency to help fight financial crime. Remember, Dogecoin has significant liquidity, which enables its global market penetration.
According to our data, Dogecoin’s price is trading around $0.064, and a market capitalization of approximately $8,470,225,861.
With such deep liquidity, Dogecoin is capable of delivering quality services to illicit activity. Moreover, it is a decentralized crypto asset running on a public ledger.
“Just days after Dogecoin launched, Dogewallet – a storage solution for Doge users – suffered a hack resulting in the loss of over $14,000 of users’ funds. Additional notable examples include the Plus Token Ponzi scheme, which resulted in the seizure of over $20 million in Doge by Chinese authorities, and alleged theft of $119 million of Dogecoin connected to a Turkish Ponzi scheme in 2021,” the report indicated.
The crypto market has recorded tremendous growth in the past decade as a new financial market. Arguably, the fiat system is still preferred in most criminal activities. Moreover, the footprints left behind are less traceable in fiat than in digital assets.