Elliptic Says Scammers and Criminals Use Dogecoin

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The experts of analytical company Elliptic have discovered millions of dollars worth of illegal transactions with Dogecoin.

According to the company analysts, the vast majority of “illegal” Dogecoin transactions are related to scams and Ponzi schemes. However, the coin is also used to finance terrorism, trade on the dark web and in the distribution of child pornography (CSAM).

At the moment, the company had discovered more than 50 different thefts, pyramid schemes and other types of fraud, as a result of which the attackers received Dogecoin worth hundreds of millions of dollars.

The Turkish authorities launched last year an investigation into a scheme that escaped with 350 million DOGE. At that time, the assets were estimated at $119 million. In addition, the well-known financial pyramid PlusToken attracted 11 billion DOGE, some of which were later confiscated by Chinese law enforcement officers.

The company experts have emphasized the share of payments related to illegal activities in Dogecoin is insignificant compared to other cryptocurrencies.