A new report identifies the increase in illicit activities with Dogecoin 

A new report identifies the increase in illegal activities with Dogecoin - Kumar indexA new report from Elliptic, a cryptocurrency risk manager, has revealed that Dogecoin (DOGE) is widely used for illicit activities. Yes, Dogecoin backed by Elon Musk and other prominent billionaires would be promoting illicit activities.

Indeed, Satoshi predicted in the Bitcoin whitepaper that "a certain percentage of fraud is accepted as inevitable".

According to the Elliptic report, Dogecoin allows human trafficking and other fraudulent Ponzi schemes.

“Elliptic has identified Dogecoin transactions worth millions of dollars related to illegal activities. While the vast majority of these activities consist of fraud, scams and Ponzi schemes, they also include the most serious types of crime, including terrorist financing and child pornography sellers (CSAM), ”the report reads.

Elliptic Report on Dogecoin

Millions of Dogecoins have reportedly been traded in what are identified as illicit activities. For example, in July 2021, the Israeli National Office for Countering Terrorism Financing issued a seizure order against 84 cryptocurrency addresses believed to be controlled by Hamas. Interestingly, the report identified Dogecoin addresses, which had received a total of $ 40.235.

However, the amount transferred to Dogecoin is just sand in the ocean, if you think that Bitcoin and Tether have made it possible to obtain approximately 3,4 and 4,1 million dollars respectively, at least according to the report.

Among the most important vices highlighted by Elliptic is the sexual abuse of minors. In particular, the company searched both Darknet and Clearnet for material relating to child sexual abuse (CSAM).

Dogecoin was reportedly among the accepted cryptocurrencies as a form of payment for child sexual abuse. Specifically, the company has identified DOGE child sexual abuse transactions totaling approximately $ 3.000 globally.

Elliptic stressed that it has provided investors with Dogecoin transparency to help fight financial crime. Recall that Dogecoin has significant liquidity, which allows it to penetrate the global market.

The scams linked to the Doge

According to our data, Dogecoin's price is trading around one quotation of $ 0,064, with a market capitalization of approximately $ 8.470.225.861.

With such high liquidity, Dogecoin is able to provide quality services to illicit activities. Furthermore, it is a decentralized cryptocurrency that runs on a public ledger.

“A few days after Dogecoin was launched, Dogewallet - a storage solution for Doge users - suffered a hack that resulted in the loss of over $ 14.000 in user funds. Other noteworthy examples are the Ponzi Plus Token scheme, which led to the seizure of over $ 20 million in Dogecoin by the Chinese authorities, and the alleged theft of 119 million Dogecoins linked to a Turkish Ponzi scheme in 2021 ", the report reads.

The cryptocurrency market has experienced tremendous growth over the past decade as a new financial market. Arguably, the fiat system is still preferred in most criminal activities. Furthermore, the footprints left are less traceable in the fiat system than in digital assets.