Capitol Building Rioters Under Scanner For Bitcoin Transactions

On February 25, the U.S. House Committee on Financial Services, Subcommittee on National Security, International Development, and Monetary Policy held a hearing titled “Dollars Against Democracy: Domestic Terrorist Financing in the Aftermath of Insurrection” (audio link).The committee is interested in following the flows of funds that could be used to fund extremists looking to incite insurrection, including the attack on the U.S. Capitol Building in Washington DC on January 6th.According to committee memos, the committee is examining the role of Bitcoin transfers used to support far-right extremists that participated in storming the Capitol.According to a report by Chainalysis alt-right internet personality, Nick Fuentes, is among those who received a BTC transfer prior to joining the attack on the Capitol Building.The report states: “On December 8, 2020, a donor sent 28.15 BTC — worth approximately $522,000 at the time of transfer — to 22 separate addresses in a single transaction. Many of those addresses belong to far-right activists and internet personalities.”Nick Fuentes was transferred 13.5 BTC (worth approximately $250,000 at the time of the transfer), far more than other recipients, several other parties received significant funds, including anti-immigration organization VDARE, alt-right streamer Ethan Ralph, and several addresses whose owners are as yet unidentified.We interviewed Laura Hoffner, Security Analyst, Concentric Advisors, and Sarah P. Alexander, an attorney at Constantine Cannon LLP who specializes in whistleblower cases to learn more about how Bitcoin’s role in transfers of money around the attack.“Almost since its inception, the allure of anonymity that cryptocurrency has provided bad actors meant they were the quickest to adopt its use. The latest use for the Capitol Attack is part of a long line of cryptocurrency being used for nefarious purposes because of both its anonymity and lack of central control, as well as transaction transparency (via the blockchain),” Hoffner said.Hoffner…