Tron, a rapidly expanding crypto network, has reportedly emerged as the preferred platform for crypto transfers supporting groups like Hamas and Hezbollah.
According to Euronews, Tron has gained prominence in facilitating crypto transactions linked to organizations designated as terrorist entities.
Tron Emerges as Preferred Platform for Crypto Transfers by Terrorist Groups
A Reuters analysis shows that Tron has overtaken its larger rival, Bitcoin, as a platform for crypto transfers linked with groups designated as terror organizations by the European Union, Israel, the United States, and other countries.
The news outlet found that since 2021, crypto seizures by Israeli security services revealed a surge in the targeting of Tron wallets and a decline in Bitcoin wallet seizures.
New York-based blockchain analysis firm Merkle Science CEO Mriganka Pattnaik told Reuters that the growing favor of these organizations towards Tron is attributed to the platform's faster transaction times, lower fees, and enhanced stability.
The National Bureau for Counter Terror Financing (NBCTF) in Israel disclosed freezing 143 Tron wallets between July 2021 and October 2023, connecting them to a "designated terrorist organization" or severe terror-related activities, as outlined in the Reuters analysis.
Moreover, findings from the research suggested that the cryptocurrency Tether dominates the Tron network. Tether, the third-largest crypto token with a market value of $89 billion (€81.29 billion), has significantly increased in the past year.
Tether, functioning as a stablecoin, maintains a 1:1 peg with the dollar and actively traces and freezes tokens used for illicit purposes, collaborating closely with law enforcement.
Tron Is Leading Blockchain for Tether Transactions
Tron is reportedly the leading blockchain for Tether transactions, boasting a hosting capacity of $48 billion in tokens, according to Tether's official website.
Notably, Tron has witnessed a substantial surge in average daily transactions, reaching 9.1 million from April to June. That represents a noteworthy uptick of over 70% compared to the corresponding period in the previous year, according to data firm Messari.
In March, Justin Sun, who founded Tron in 2017, was entangled in legal proceedings initiated by the US Securities and Exchange Commission (SEC).
The SEC accused Sun of artificially inflating trading volumes and illicitly vending Tron tokens as an unregistered security. Sun vehemently refuted these accusations, asserting that the charges "lack merit."
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