Extremist groups—particularly in Europe—are increasingly turning to crypto currencies to fund their activities and gather support, according to a new report that also shows that increased reliance on crypto currencies allows monitors to better observe how these groups are growing and evolving.
Blockchain data platform Chainanalysis looked at a variety of groups associated with neo-Nazism and racially or ethnically motivated violent extremism in Germany, Austria, the Baltic states, and other countries. This includes organizations that support or encourage political violence without expressly planning or ordering it.
“Many groups espousing extremist ideology advance their agendas without directly engaging in violence themselves. However, such groups often incubate and promote escalation to violence, making it critical to understand and disrupt their financial lifelines,” the report concludes.
While there are often links between individuals who support such groups and acts of violence, those links are frequently indirect, a Chainanalysis spokesperson said. “They may not necessarily always be espousing violent ideology or promoting violence.”
But while some extremist groups don’t direct specific acts of violence, they can radicalize individuals, making violent acts more likely. “Ultimately, what they’re doing is driving potentially violent outcomes by your everyday civilian,” the spokesperson said.
The analysis shows that while extremist groups in the United States are number one in receiving funding via crypto currencies, groups in Europe have been adapting the tactic more frequently since 2017 and are now catching up fast. “Between 2022 and 2024, Europe’s share rose dramatically, commanding nearly 50% of total inflows,” according to the report.
Part of the reason for that, the spokesperson said, is a phenomenon called de-banking. Essentially, banks, credit card and online payment companies have policies that bar extremist groups from using their platforms or services; crypto offers a different means to raise funds.
Still, though Crypto currencies facilitate fast payment, they are not anonymous. And as different people fund extremist groups or causes via crypto currency, analysts can see the relationships between those groups and further investigate how they may be borrowing ideas or narratives from one another.
“We can see everyone, every address that has sent funds into that donation campaign, and also everywhere that they have attempted to cash those funds out afterwards. Essentially, what that does is it gives that opportunity for law enforcement or government to potentially take action if something illegal has occurred,” the spokesperson said.
What the data has shown so far is increasing collaboration among groups as they focus on similar themes. “So whereas somebody may historically have promoted anti -semitism and, you know, posted swastikas on their page … maybe they’re starting to post more about, you know, anti-immigration or pro-Russia or conspiracy theories to garner focus from a broader audience.”
The individual donations to these groups aren’t huge, the spokesperson said. They’re usually in the tens of thousands of dollars, and the funds are generally spent fairly quickly. But as governments discuss the possibility of starting national crypto reserves, which would result in valuation rises for crypto currencies, would that mean these groups could end up with more resources to promote their agenda?
“If they’re holding, Yes. We have seen that be the case.”
