Cryptocurrency Exchanges: Hotbeds for Extremists?
A recent report from the Anti-Defamation League (ADL) has shed new light on the alarming use of cryptocurrency exchanges by domestic extremists, including neo-Nazis and white supremacists. The report, which tracked over $140,000 in extremist financing, raises important questions about why these exchanges lack policies against hosting extremists. This revelation comes at a time when antisemitism is on the rise, with calls for stricter regulation of cryptocurrency exchanges intensifying.
According to the ADL’s report, 15 individual domestic extremists and extremist groups used 22 different crypto exchanges to move their cryptocurrency in and out throughout 2023. These exchanges provide a platform for holders of cryptocurrency to trade it with others and exchange it for traditional currency like the US dollar. Shockingly, the report found that only one of the exchanges studied had a policy explicitly prohibiting the funding of hate or extremism. The ADL is now urging these exchanges to update their policies and explicitly ban extremist fundraising.
The crypto funds identified by the ADL represent just a fraction of the overall extremist financing occurring within this “complex and sprawling ecosystem.” Experts suggest that domestic extremists, who were early adopters of cryptocurrency, may be sitting on potentially millions of dollars in crypto. In light of the current spike in antisemitism across the country, coupled with the ongoing debates regarding the regulatory environment for cryptocurrency, major exchanges are now under scrutiny and are being urged to review their users for illegal activity.
Proposed Law to Criminalize Militia Activity
In an effort to address the growing threat posed by militia-style groups, new legislation has been proposed in both the House and Senate to outlaw paramilitary activity, including patrolling and drilling. The Preventing Private Paramilitary Activity Act, introduced by Senator Ed Markey and Congressman Jamie Raskin, aims to supplement existing state laws against these groups, which exist in all 50 states but are seldom enforced.
Militia-style groups played a significant role in the January 6th insurrection, and the conviction of Stewart Rhodes, founder of the Oath Keepers, for seditious conspiracy exemplifies the gravity of their actions. However, while all states technically have laws prohibiting citizen-run groups engaged in law enforcement activities reserved for government agencies, these laws are rarely used in prosecutions.
Mary McCord, Executive Director of the Institute for Constitutional Advocacy and Protection at Georgetown University Law Center, emphasized the threat posed by private paramilitary actors to democracy. She believes that the proposed legislation would provide a necessary legal tool to prevent these groups from undermining the democratic process.
Antisemitism Tally Sparks Controversy
The Anti-Defamation League (ADL) recently faced criticism over its study, which revealed a staggering 360% increase in antisemitic incidents during the last three months of 2023 compared to the same period in 2022. However, this increase was attributed to a broadened definition of “antisemitic incidents” employed in the study. The Forward, a Jewish-American newspaper, reported that a significant portion of the incidents involved rallies featuring “anti-Zionist chants and slogans,” accounting for approximately 1,317 incidents out of more than 3,000.
The ADL defended its decision to broaden the definition, stating that it aimed to account for the changing times following the Oct. 7 Hamas attack on Israel. The organization believes that this adjustment accurately reflects the current state of antisemitism and the impact anti-Zionist activities have on the American Jewish community. However, the spokesperson acknowledged that the ADL “erred” in not fully explaining the methodology behind the study and stated that the organization would provide further clarification in its final audit for 2023.
These findings align with other evidence highlighting the increase in antisemitism since the start of the Hamas-Israel war. In New York, for example, antisemitic hate crimes surged by over 200% from October 2022 to October 2023, according to the New York Police Department. The controversy surrounding the ADL’s study underscores the complex nature of measuring and addressing antisemitism within society.
Statistic of the Week: 48 Months in Prison
Florida Proud Boy Gilbert Fonticoba was recently sentenced to serve 48 months in federal prison for his role in the January 6th insurrection at the U.S. Capitol. Fonticoba, who marched to the Capitol with a large group of Proud Boys, was convicted of obstruction of an official proceeding and civil disorder, both felonies. This sentencing highlights the ongoing efforts to hold individuals accountable for their actions during the attack on the Capitol.
While Fonticoba’s sentence represents a significant step towards justice, hundreds of identifiable individuals involved in the insurrection remain free. The FBI continues its efforts to make arrests, but the process may take years to complete. The prosecution of individuals involved in the attack underscores the seriousness of their offenses and serves as a reminder that accountability remains a necessary component of a functioning democracy.
Spotlight on Extremism: The Week in Review
This week has offered a glimpse into the multifaceted world of extremism. The report by the Anti-Defamation League exposed the troubling use of cryptocurrency exchanges by domestic extremists, raising important questions about the lack of policies in place to prevent such activities. Proposed legislation seeks to curtail militia activity across the country, aiming to provide a legal framework to combat the threat they pose to democracy. Controversy surrounds the ADL’s study on antisemitism, highlighting the challenges of determining and addressing incidents within an evolving landscape. Lastly, the sentencing of Gilbert Fonticoba serves as a reminder of the ongoing efforts to hold those involved in the January 6th insurrection accountable for their actions. This week’s developments emphasize the need for continued vigilance in combatting extremism in all its forms.
Analyst comment
1. Cryptocurrency Exchanges: Hotbeds for Extremists?
Negative news. The report highlights the alarming use of cryptocurrency exchanges by domestic extremists, raising concerns about the lack of policies to prevent extremist funding. This could lead to increased pressure for stricter regulations on cryptocurrency exchanges.
2. Proposed Law to Criminalize Militia Activity
Positive news. The new legislation aims to outlaw paramilitary activity by militia-style groups, addressing the growing threat they pose. It provides a legal tool to prevent these groups from undermining the democratic process.
3. Antisemitism Tally Sparks Controversy
Neutral news. The ADL’s study reveals a significant increase in antisemitic incidents, but controversy arises due to a broadened definition of incidents that includes anti-Zionist activities. The study highlights the complex nature of measuring and addressing antisemitism.
4. Statistic of the Week: 48 Months in Prison
Positive news. The sentencing of Gilbert Fonticoba for his role in the January 6th insurrection at the U.S. Capitol demonstrates ongoing efforts to hold individuals accountable. It serves as a reminder that accountability is necessary for a functioning democracy.
As an analyst, the market for cryptocurrency exchanges may face increased scrutiny and regulation due to the report on extremist use. The proposed legislation against militia activity could contribute to a safer and more stable environment. The controversy surrounding the ADL’s study raises awareness about the challenges of addressing antisemitism. The ongoing efforts to hold individuals accountable for the Capitol attack reinforce the importance of maintaining law and order. Continued vigilance is necessary in combating extremism in all forms.
