Cryptocurrency and the Financing of Right-Wing Extremism: A Blockchain-Based Analysis

Right-wing extremists are believed to use cryptocurrencies to bypass restrictions and controls on traditional financial instruments to finance their activities anonymously. However, there is a lack of solid evidence to support these claims. Our study addresses this gap by utilizing blockchain technology to track both incoming and outgoing transactions across 556 cryptocurrency addresses linked to far-right extremists, sourced from the Southern Poverty Law Center's HateWatch initiative. Our research provides empirical insights that Bitcoin are their main choice due to tradability, they are diversifying to include Ethereum, Litecoin, and Monero. Their crypto use involves facilitating transactions with various parties, potentially including illegal activities, and may generate profits beyond simple fundraising. We further explore the involvement of third parties, including exchanges, mixers, gambling platforms, donation sites, and dark web services, thus providing a comprehensive view of the ecosystem surrounding extremist funding through cryptocurrencies.