Crypto donations to extremist groups rise in Europe — Report

Cryptocurrency donations to extremist groups have dipped globally but are rising in Europe, according to a report from blockchain data platform Chainalysis.

The report, shared with Cointelegraph, shows most crypto donations to extremist groups came from North America prior to 2017. Since then, Europe has been steadily capturing inflows. Between 2022 and 2024, for instance, Europe accounted for nearly 50% of extremist group onchain activity.

Not only are crypto donations to extremist groups in Europe increasing, but the size of those donations and donor intensity are rising as well. From 2023 to 2024, at least five types of extremist groups experienced an increase in size of deposits year-over-year: white nationalist (270%), nationalist (164%), conspiracy (70%), anarchist (35%) and antisemitic (22%), notes the report. 

Highly polarizing events, such as national elections, have created a vortex that draws in more donations, often resulting in a flood of money to extremist groups that espouse radical ideologies.

While crypto donations to extremist groups in Europe are rising, North America still leads all regions with a total of $20 million donated to these groups. Europe comes in second with $1.9 million, Oceania in third with $319,000, and donations from undisclosed regions amounting to $162,000.

Learn more: UK terrorism tsar says new laws needed to prosecute people who train extremist AI bots

Extremist groups face challenges, find solutions

The report notes that extremist groups face challenges — legal and financial. For instance, anti-terrorism financing laws and regulations from the Office of Foreign Assets Control (OFAC) in the United States and similar government entities around the world stipulate that cryptocurrency exchanges must prohibit, flag and halt crypto activity linked to terrorism.

Some centralized crypto exchanges have run afoul of those laws and suffered significant penalties. In November 2023, the US government fined Binance $4.3 billion for failure to comply with Anti-Money Laundering (AML) laws. Binance allegedly failed to report suspicious transactions, later proven to be associated with a variety of terrorist organizations.

However, extremist groups have proven adept at changing their fundraising methods. Often driven off the mainstream internet, they turn to the dark web to continue their causes. Some have gone a step further and removed public postings of cryptocurrency donation addresses, choosing to communicate the addresses directly with supporters. Others are using privacy coins, like Monero (XMR).

To raise more money, extremist groups often cross-pollinate their ideologies — essentially blending them. By combining different extremist movements and focusing their supporters on a common enemy, they are able to attract more financing.

Is there a link between the debanking of extremist groups and crypto?

One of the most controversial topics regarding hate groups is “debanking” — or the closure of bank accounts associated with high-risk individuals and organizations. The controversy sometimes involves the practice itself, as it runs counter to principles like liberty but also to the individuals and organizations designated as “high-risk,” which may depend on political climates.

As the Chainalysis report notes, many groups that have already been debanked may seek out additional methods of funding, including cryptocurrency. Extremist groups, outside of the traditional banking system, use crypto as a means to avoid sanctions and continue funding their activities.

Related: Senator Lummis claims FDIC destroyed Operation Chokepoint 2.0 docs