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Dogecoin is Growing Popular Among Criminals, Elliptic Report Says


cryptoknowmics.com 23 June 2022 05:30, UTC
Reading time: ~2 m

According to a study conducted by blockchain analytics firm Elliptic, Dogecoin (DOGE) is increasingly getting popular among criminals - in illicit activities including Ponzi schemes, terrorism financing, and child sex abuse material (CSAM).

Dogecoin Catching Criminal Attention

Per the report, the meme coin has also caught the attention of bad actors, with "Dogecoin transactions connected to illicit activity worth millions of dollars."

"While the vast majority of this activity consists of fraud, scams and ponzi schemes, it also includes the most serious types of crime, including terrorism financing and vendors of child sexual abuse material (CSAM)," wrote Elliptic in its report.

The crimes involved in Dogecoin include scams, fraud, and Ponzi schemes, totaling about 50 cases. These include the $6 billion PlusToken Ponzi scheme, which resulted in the seizure of more than $20 million worth of DOGE by Chinese authorities in 2020, and an alleged theft of $119 million worth of Dogecoin linked to a Turkish Ponzi scheme in 2021.

Growing Appetite for Criminals to Adopt Variety of Crypto Assets

The amount of identified Dogecoin payments used by child sex abuse material vendors is relatively low at $3,000 globally.

"The fact that the Dogecoin adoption trend has reached this community further demonstrates the appetite for criminal actors to adopt a wide range of cryptoassets in a bid to avoid notice," Elliptic’s report said.

Dogecoin’s price is down a staggering 91.39% from its all-time high, but it remains among the top 10 cryptocurrencies by market cap.

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