Report Says Bitcoin Was Used To Fund ISIS

Bitcoin was poised to finish the week on a low; the cryptocurrency had all but lost the gains from Monday’s Coinbase exchange opening and traded slightly above $230 on Friday morning. The currency also suffered more bad press on Thursday after a report that the currency may have been used by ISIS to fundraise in America.

A Singapore-based firm claims to have evidence that Islamic State terror cells in the US have been receiving bitcoin funding in order to move money anonymously. The firm says the ISIS group had already received roughly $1,150 worth of bitcoins before the account was shut down by the FBI.

Some are skeptical of the claims, saying that strict laws governing the movement of money are likely to deter people from fundraising in the US,  while others say the amount raised is trivial compared to what ISIS receives selling oil on the black market. Still, the report underscored an important question about the problems associated with an unregulated currency.

This is not the first time worries that digital currencies could lend themselves to criminal and terrorist behavior have been expressed. Earlier in January, a letter from the British Banker’s Association to the Treasury warned that digital currencies should be integrated cautiously. The association, which represents several large UK banks, said that digital currencies’ unregulated market makes it more difficult for law enforcement to track down people buying and selling illegal goods and services or funding terrorism and asked that policy makers consider those implications.