After the radical militant group 'Hamas' launched terror attacks on Israel in early October, various governments, including Israel, the United States, and the European Union, believe that cryptocurrencies may have facilitated fundraising activities for terrorism. Tron seems to have emerged in Israel's fight against the funding of Iran-backed militant groups, from Hamas to Hezbollah.

TRON Draws Interest from Terror Groups

According to Router’s interview and report, with seven financial crime experts and blockchain investigation specialists, Tron, faster and cheaper than its larger competitor Bitcoin, has surpassed its rival as a platform for crypto transfers associated with organisations designated as terrorist groups by Israel, the United States, and other countries.

An analysis by Reuters on crypto seizures announced by Israeli security services since 2021 reveals a noteworthy trend: a significant increase in the targeting of Tron wallets for the first time, accompanied by a decline in Bitcoin wallet seizures.

Mriganka Pattnaik, CEO of New York-based blockchain analysis firm Merkle Science, said,

"Earlier it was Bitcoin and now our data shows that these terrorist organizations tend to increasingly favor Tron."

More Evidence

On October 19th, crypto influencer @Phyrex_Ni integrated and released a chart showing Hamas fund infiltration on platform X. In the chart below, besides using Tether (USDT) stablecoin, Tron is another crypto network Hamas uses.

And @Phyrex_Ni specifically revisited a post by Elizabeth Warren, the U.S. Senator from Massachusetts, on the same day to enhance the credibility of the integrated chart.

"Hamas raised millions via crypto in the months leading up to their attack on Israel."

Israel Freezes 143 TRON Wallets

Reuters continues to point out that between July 2021 and October 2023, the Israel National Bureau for Counter Terror Financing (NBCTF) has frozen 143 TRON wallets, deeming them related to "specific terrorist organisations" or used for "severe terrorist crimes." However, whether these wallets are truly involved in terrorist financing remains subject to further investigation.

Several users whose wallets were frozen admitted to using TRON but denied any association between their wallets and terrorist organisations. They claimed that their cryptocurrency transactions were solely for handling their own business and personal finances.

Justin Sun and Tron's Response

Regarding the Reuters report, TRON founder Justin Sun responded on X last night, stating that his primary focus remains on "decentralisation" to ensure user asset security.

"While we are committed to combating terrorist financing by integrating various analysis projects and partners, our top priority remains maintaining decentralization, ensuring the safety of everyone's assets."

Additionally, Public Relations Lead from Tron, Hayward Wong, in an interview, cited the use of the US dollar for money laundering as an example. He pointed out,

"All technologies could "in theory be used for questionable activities". Tron did not have control over those using its technology and that it was not linked to the groups identified by Israel."

Will it Affect the Court in December?

In March, the U.S. Securities and Exchange Commission filed a lawsuit against Justin Sun, the founder of Tron in 2017. The lawsuit alleges artificially inflated trading volumes and the unregistered sale of Tron tokens as securities.

Justin Sun's court date in December is approaching. It's uncertain whether Tron's alleged ties to a terrorist organisation will affect his review. Following Binance's CZ admitting guilt to money laundering charges, Justin Sun could potentially be the next target of regulatory scrutiny.