A new report from the blockchain analytics firm, Chainalysis, has shown that cryptocurrency is being used to finance and facilitate disinformation campaigns globally.
The study titled: “Malign Interference and Crypto: How Crypto Transaction Tracing Can Expose and Disrupt Malign Influence Efforts” revealed an intricate web of state and non-state actors leveraging digital currencies to spread false information and sow discord, especially in the lead-up to crucial elections.
READ: Coordinated disinformation networks flooded social media before EU elections – Report
According to the report, Crypto is playing an increasingly significant role in funding online disinformation campaigns aimed at influencing elections.
“We’re seeing a sophisticated nexus between cryptocurrency and disinformation that poses a significant threat to democratic processes globally,” said Sarah Johnson, lead researcher at Chainalysis. “This isn’t just about tracking money anymore—it’s about safeguarding the integrity of information ecosystems.”
The report revealed that foreign actors have been conducting systemic influence campaigns to disrupt democratic processes, particularly during election cycles. Notably, these campaigns have adopted novel tactics involving cryptocurrency to purchase the necessary technology and infrastructure.
The report showed that the disinformation actors identified include SouthFront, a Russian disinformation outlet sanctioned by the United States Treasury’s Office of Foreign Assets Control (OFAC), and Islamic World News (ISWN), an Iranian media entity with ties to the Islamic Revolutionary Guard Corps. Both organisations have been found to solicit cryptocurrency donations to fund their operations.
It also highlights the role of technology services in enabling these campaigns. Ubar Store, a marketplace for stolen social media accounts, and Shinjiru, a Web hosting service known for its anonymity features, both accept cryptocurrency payments. These services provide the infrastructure needed to create and amplify fake news at scale.
The report also revealed mutual donation patterns among disinformation groups. One donor, for instance, allegedly sent over US$43,000 in Bitcoin to multiple pro-Russian organisations, including a paramilitary group called MOO Veche.
For policymakers and law enforcement agencies, the report offers a way to track and shut down the disinformation perpetrators.
It detailed how blockchain analysis techniques can be used to trace these financial flows and potentially disrupt malign influence networks. A case study on the takedown of the 911 S5 botnet demonstrates the effectiveness of these methods.
As nations worldwide prepare for national elections, the findings underscore the urgent need for enhanced regulatory frameworks. International cooperation is crucial to combat these evolving cross-border threats.
Nurudeen Akewushola is a fact-checker with FactCheckHub. He has authored several fact checks which have contributed to the fight against information disorder. You can reach him via [email protected] and @NurudeenAkewus1 via Twitter.
