Tron, a rapidly growing cryptocurrency network, has emerged as a prominent platform for crypto transfers associated with groups such as Hamas and Hezbollah. A recent Reuters analysis reveals that Tron has surpassed Bitcoin in facilitating crypto transfers linked to organizations designated as terrorist entities by the US, Israel, the EU, and other nations. The shift has probably taken place due to Tron’s faster transaction times, lower fees, and increased stability.
Israeli security services have observed a notable increase in the targeting of Tron wallets in crypto seizures since 2021, with a decline in Bitcoin wallet seizures. The National Bureau for Counter Terror Financing in Israel froze 143 Tron wallets between July 2021 and October 2023, connected to designated terrorist organizations or severe terror crimes (here is their big list of cryptocurrencies seizures). The majority of Israel’s Tron seizures this year, including 39 wallets owned by Hezbollah and 26 by Hamas ally Palestinian Islamic Jihad, point to heightened scrutiny of terror financing post the Hamas attacks in October.
Notably, a significant portion of the seized Tron wallets was associated with a Gaza-based money exchange company called Dubai Co. For Exchange, which Israel considers a terrorist group due to its alleged substantial financial aid to Hamas. Tron, however, maintains that it has no control over users and has no links to the identified groups. The analysis also indicates that Tether, a stablecoin, dominates the Tron network, with a market value of $89 billion. Despite legal challenges, Tron remains a key blockchain for Tether transactions, hosting $48 billion of the tokens.
Justin Sun, Tron’s founder, faces legal issues with the US Securities and Exchange Commission (SEC), accused of inflating trading volumes and selling unregistered securities, a claim Sun disputes, stating that the SEC charges lack merit.
