New Report Highlights Rise in Illegal Dogecoin Use

Dogecoin (DOGE) is one of the world’s most popular meme coins. The cryptocurrency has made a name for itself despite the lack of a definitive use case.

However, a new report from blockchain compliance and cybersecurity firm Elliptic has shown that illegal use of the popular meme coin is on the rise.

Dark Web Criminals Love DOGE

Earlier this week, Elliptic published a bombshell report where it revealed a rise in illegal DOGE transactions, especially on the Dark Web. The London-based firm explained that it had noticed transactions worth millions of dollars linked to DOGE and illegal activities all across the web.

Pointing to DOGE’s increasing adoption in criminal circles, Elliptic cited a report from July 2021 where Israel’s National Bureau for Counter Terror Financing seized 84 crypto addresses believed to be linked to the Islamist extremist group Hamas or which had been otherwise used in terrorist activity. The wallets seized had about $40,000 DOGE at the time.

The Elliptic report also highlighted a “small and growing number” of CSAM vendors operating on the Dark Web that have gotten paid in DOGE. While the amount of DOGE in question is less than $3,000, the cybersecurity firm has warned that this points to an increasing appetite for the dog-themed asset from criminal elements.

Elliptic pointed out that Dogecoin, one of the best meme coins to buy, has become more widely accepted as a payment method for several of these questionable platforms over the past year. This is no coincidence. Dogecoin broke into mainstream consciousness last year, with many large companies and institutions looking to buy Dogecoin and take advantage of its propensity for massive gains.

At the same time, the dog-themed cryptocurrency has become a more attractive option for criminals. Many would be looking to take advantage of its improved liquidity and accessibility. Also, because many investors see DOGE as a joke currency, it is the perfect front for criminals to move their ill-gotten gains. At the end of the day, top regulators are more focused on “big coins” like Bitcoin and Ethereum, not a “joke currency” like DOGE.

So while Dogecoin doesn’t necessarily have the same anonymity features as assets like Litecoin and Monero, its status has made it the perfect front for many of these illegal platforms to get paid and fund their operations.

Not a Joke Anymore

Besides its use on the Dark Web, some fringe parts of the internet have increasingly accepted DOGE. For instance, Infowars – the far-right conspiracy theory news outlet promoted by Alex Jones – currently accepts DOGE for payments.

Jones and Infowars have been embroiled in a years-long defamation legal battle after the conspiracy theorist denied the 2012 Sandy Hook Elementary School shooting in Connecticut. So far, the case has brought them to the brink of bankruptcy. Still, Jones has continued to solicit funds from willing donors, and Dogecoin is one of the available payment methods.

Jones has also been receiving Bitcoin donations, according to a Southern Poverty Law Center report.

To be fair, this issue isn’t peculiar to DOGE alone. Criminals have used many assets to facilitate payments in the past, and there’s an argument that crypto wouldn’t be what it is today without the early adoption of these Dark Web platforms.

However, reports like these would only further damage the market’s reputation – especially now that there are increasing calls for regulation. The Dogecoin Foundation has been working hard this year to shed the asset’s “joke” image and make it a more functional coin. Perhaps, they could start by addressing this issue.

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