According to experts, the meme-cryptocurrency is involved in financial ponzi schemes, the purchase of banned content and substances, as well as terrorism financing

Elliptic analysts revealed the use of Dogecoin in illicit activities

23.06.2022 - 14:30


2 min

What’s new? Analytical company Elliptic has published a study that says Dogecoin (DOGE) is widely used in illegal activities. According to the experts, the meme-cryptocurrency is most often involved in fraudulent schemes, particularly in Ponzi schemes. In addition, DOGE is also used in the purchase of illegal content and substances, as well as for terrorism financing.

Elliptic Connect’s Report

What does the report say? Elliptic identified more than 50 cases of hacking, scams and Ponzi schemes in which attackers made hundreds of millions of dollars in Dogecoin. For example, a few days after the launch of the Dogewallet wallet, the service was attacked, resulting in the theft of about $14 000. A much larger case is related to the Plus Token Ponzi scheme in which the Chinese authorities seized more than $20 million worth of DOGE. In 2021, Turkish law enforcers stopped the activities of fraudsters who had stolen $119 million in Dogecoin through a similar scheme.

In July 2021, Israel's National Bureau of Counter Terrorism Financing issued an order to seize 84 cryptocurrency wallets controlled by the Palestinian Islamist Hamas movement and used to accept donations. Among them were DOGE addresses that received a total of $40 235.

Elliptic experts also identified several darknet marketplaces that sell drugs and stolen data and accept Dogecoin as a method of payment.

DOGE is trading at $0,063 as of June 23 at 14:30 UTC, having lost 2% in a day, according to Binance. The asset ranks 11th in the cryptocurrency market capitalization ranking at $8,39 billion, according to CoinGecko.

On June 17, US citizen Keith Johnson sued Ilon Musk and the companies Tesla and SpaceX, which he heads, claiming that they had implemented illegal financial schemes to manipulate the Dogecoin exchange rate. Johnson is seeking $86 billion in damages from Musk and $172 billion in moral damages.

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