This research briefing by Jessica Davis examines how terrorist financing is increasingly conducted through “hybrid threat finance networks” that combine traditional financial systems with digital assets. The paper argues that cryptocurrencies and other digital assets are not replacing established methods such as cash, banks, money service businesses and hawala networks; rather, they are being layered onto existing systems to move funds more quickly, cheaply and with greater opacity. Drawing on a dataset of over 21,000 datapoints across 1,150 records and 19 fields, the author finds that digital assets are now a growing feature of terrorist financing activity, particularly in the transfer of funds between supporters, facilitators and terrorist organisations.

The report analyses how terrorist actors use cryptocurrencies alongside informal value transfer systems and other financial channels, highlighting examples linked to the Islamic State and its affiliates. It concludes that hybrid financing networks are likely to remain the dominant model for terrorist financing and identifies stronger public–private cooperation and greater international regulatory coordination as key priorities for disruption efforts.

The research briefing by Jason Blazakis examines how advances in artificial intelligence (AI) and large language models (LLMs) could be exploited to support terrorist financing activity. The report argues that LLMs could act as powerful “force multipliers” by lowering barriers to persuasion, coordination and financial deception and that these technologies risk reshaping the economics of terrorist fundraising by enabling scalable, personalised and culturally tailored appeals at unprecedented speed. 

This research briefing by Allison Owen examines intermediary services that convert virtual assets to fiat currency in cases related to three groups: Hamas, Hezbollah and ISIS. This research brief is based, in part, on data provided by blockchain analytics company Crystal Intelligence, which was gathered through its internal investigations.

In this research briefing, Gonzalo Saiz examines the exploitation of online gaming platforms by terrorist and extremist groups for fundraising purposes. Through the analysis of documented cases, the briefing identifies how gaming and gaming-adjacent platforms can be leveraged to generate financial support for extremist activities and outlines specific policy recommendations designed to address and mitigate these emerging risks.

Increasing pressure to designate non-state proxies like the Wagner Group as terrorist entities reflects an eagerness on the part of states to expand counterterrorism financing capabilities that were initially designed to erode jihadist terrorist groups. In his forthcoming Project CRAAFT Research Briefing, Jason Blazakis argues that current financial countermeasures levied against the Wagner Group have been insufficiently implemented and are thus minimally effective in eroding the group’s finances and capabilities. What more should the EU do to ratchet up pressure on this violent non-state proxy group?