Pentagon Division to Investigate Link between Bitcoin and Terrorist Funding

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Pentagon Division to Investigate Link between Bitcoin and Terrorist Funding
Pentagon Division to Investigate Link between Bitcoin and Terrorist Funding

Pentagon Division to Investigate Link between Bitcoin and Terrorist Funding

Bitcoin may soon face an investigation from a Pentagon division, the Combating Terrorism Technical Support Office (CTTSO). The move is aimed to provide an understanding about the news stories that link Bitcoin with funding of terrorist organizations. According to the organization the division is expected analyze terrorism and irregular warfare capabilities.

The news report published in the International Business Times the program recently ended its open call for vendors that could help the US military understand the technologies and any threats they could potentially pose. The aim of the entire effort is to investigate all the angles that lead to the misuse of digital currencies for contraband activities.

As the reports say that the US Defense Department is conducting a counterterrorism program investigation of virtual currencies like Bitcoin and other new technologies such as Smartphone and social media, to better understand if they pose security threats. A profound understanding of the links will help the organization chalk out plans to clean the mess.

The news regarding any such efforts was published by Bitcoin Magazine, the CTTSO which called for various solicitations for agency projects. The idea behind the attempt was to understand and develop and/or enhance new concepts and constructs as well as the role of virtual currencies in financing threats to the US.

A memo from the organization says that the introduction of virtual currency will likely shape threat finance by increasing the opaqueness, transactional velocity, and overall efficiencies of terrorist attacks. The recent debacle of Mt. Gox and Silk Road are some blatant examples where a Bitcoin company may go wrong.

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Money Laundering through Bitcoin

The Combating Terrorism Technical Support Office believes that the anonymity offered by virtual currencies is a top point of concern for law enforcement. It says that as anonymity aids in the formation of illicit operations like Silk Road, a digital black market thought to be closed down in October but still popular despite its founder’s arrest.

Even the stalwarts have been caught doing illegal activities related to Bitcoin. For instance, earlier Robert Faiella and Charlie Shrem, the CEO of the Bitcoin exchange service BitInstant are the open cases where the digital currency was used for money laundering to the Bitcoin exchange business.

The reports claim that the CTTSO is also researching Android, Motorola, social media, and virtual reality for their potential to be used in terrorism campaigns.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com