A new report by San Francisco-based blockchain intelligence firm TRM Labs has uncovered links between the Islamic State Khorasan Province (ISKP) and ISIS-affiliated fundraising networks in India, as reported by The Hindu.
The findings, published in the 2025 Crypto Crime Report, highlight how ISKP has leveraged cryptocurrency transactions for illicit funding.
The report, released on 10 February, focuses on illicit crypto transactions in 2024. While it noted a 24 per cent decline in such transactions compared to 2023, it also flagged a sophisticated shift in terror financing tactics.
Key findings include:
(i) On-chain links between ISKP-affiliated crypto addresses and fundraising campaigns in India.
(ii) The increasing use of Monero (XMR), a privacy-focused cryptocurrency, for donations.
(iii) The first ISKP donation drive using Monero was announced in Voice of Khorasan, the official magazine of its media wing, Al-Azaim.
(iv) Growing preference for Monero due to its enhanced anonymity features, making transactions harder to trace.
At the time of the report, 1 XMR was valued at Rs 19,017.77.
A Shift in Strategy?
The report suggests that terror groups are adapting to increased scrutiny and crackdowns by law enforcement. With authorities tightening their grip on terror-linked financial networks, these groups have refined their Tactics, Techniques, and Procedures (TTPs) to avoid detection.
However, the report also predicts that Monero’s volatility and regulatory crackdowns could push these groups toward stable cryptocurrencies in the future.