Assessing Terrorist Use of Virtual Asset Intermediaries

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.

To further analyse these intermediary service providers, the author conducted interviews with representatives of the public and private sector familiar with the intersection of virtual assets and terrorism financing. In addition, the research brief considers grey literature, including multilateral and government documents, private sector reports and academic research.

Understanding the convergence of traditional financial flows with modern technology – and gathering appropriate data – is essential to detecting and disrupting the evolution of terrorist activities.