CoinPayments Claims Its Bitcoin Services Were Not Used By Terrorists Before Sri Lanka Bombing
It is no secret that Bitcoin is often accused of being used by criminals and terrorists. While the truth is that only an almost irrelevant share of the market is used this way, there are still occasional criminals using Bitcoin and whenever this happens, they end up on the news.
The most recent case of terrorists using Bitcoin was reported by Globes, a Israeli business media outlet. According to it, Whitestream, a local company which tracks terrorists using cryptos, has affirmed that CoinPayments, a Canadian crypto exchange, was used by terrorists to convert BTC into fiat just before the Sri Lanka bombing, which killed 253 people.
Whitestream, described as an intelligence company in the reports, affirmed that the perceived anonymity of Bitcoin and the ease of using it for unsupervised international money transfers are the main reason why people use it.
Just one day before the bombing, terrorists from ISIS made very large Bitcoin transfers using the Canadian exchange. The channels that withdrew the money were some used to raise contributions from supporters of the terrorist group. Since ISIS took responsibility for the attacks, the link was clear to the intelligence company.
According to the intelligence group, the terrorists had a balance of $500,000 USD before the day of the withdrawal. During the day, the value went to $4.5 million USD and then they took the money a day before the attack.
Just before the attack and the withdrawal, ISIS was reported to be running a massive campaign in order to secure funds for their actions. In fact, the terrorist organization was already doing it for over two years. They use a domain which is frequently changed in order to be harder to track by the authorities.
Whitestream also affirmed that CoinPayments acknowledged that their wallet was involved, but the company denied any connection to ISIS. This was not the first time that the company was involved in a similar case, however, as its services were used before by Hamas, a Palestinian fundamentalist organization deemed as terrorists by the United States and Canada.
According to the report, Whitestream is often used by the government of Israel in order to thwart and half illegal money transfers involving terrorists.
The company discovered the transactions because they identified and tracked the ISIS Bitcoin wallet. Then, they tracked the donations and verified the data in order to see the connection with CoinPayments.
CoinPayments Claim Innocence, Crypto Media Outlet Investigates Whitestream
CoinPayments, the Canadian exchange, claims innocence. According to it, the transactions are real but they are not directly connected to ISIS as Whitestream claimed and they affirmed that the company does not provide crypto to fiat service as affirmed by Whistream on its own report.
They also affirmed that Whitestream was defaming the company and that they would proceed to sue it for libel. They have initiated legal action against the company in order to protect their reputation and their clients, affirming that they always follow the right procedures in order to be compliant.
AMBCrypto, a crypto media outlet, has also reported on this story. The company decided to investigate Whitestream in order to check the credibility of the company. They discovered that the studies made by the company were only reported by the Globes so far and that Whitestream did not have any media presence before 2019.
Also, while the company was founded in 2014, it is hard to find information from it. The company only has 2,000 Twitter followers and less than 100 Facebook likes. The number of Twitter followers skyrocketed after the latest report.
It should be noted that the official site of the company, Whitestream.io, is under construction and it does not provide a lot of information about the company. There was also no information on the addresses that could constitute proof that Whistream is actually saying the truth at this time.
Because of this, AMBCrypto has advised its readers to take these allegations against CoinPayments with a grain of salt and we agree with their advice.