July 24 Crypto News – SouthFront’s Disinformation Campaigns Funded by Cryptocurrency
July 24 Crypto News – Malicious actors have increasingly used crypto-linked disinformation campaigns to disrupt elections, including the 2020 U.S. presidential election. With the 2024 global elections set to impact half the world’s population, identifying and addressing these campaigns is crucial to protect democratic processes from interference.
Analysis of Disinformation Campaigns
Upon analyzing disinformation actors, their tactics, and on-chain activity, Chainalysis identified one significant media outlet: Russia-based SouthFront. This outlet was sanctioned by OFAC in April 2021 for its involvement in foreign interference in the U.S. 2020 presidential election under Russian government guidance.
SouthFront’s Crypto Funding
Disinformation Campaign Funded by $27K in Crypto
The Federal Security Service (FSB), a division of Russian intelligence, oversees SouthFront, which targets military enthusiasts, veterans, and conspiracy theorists while meticulously concealing its Russian ties. SouthFront solicits crypto donations to support its operations, providing detailed guidelines on its official website for secure crypto transfers. Donors are advised to transfer funds directly from personal or unhosted wallets to avoid detection by crypto exchanges that enforce KYC practices.
From July 2018 to now, SouthFront has received over $27,000 in crypto, primarily in Bitcoin. The organization continues to accept donations and cash out through both sanctioned exchanges like Garantex and mainstream ones. Its donation page currently reports $1,260 collected since June 1, covering about 25% of its monthly budget. Chainalysis stated to CryptoPotato:
“Executing effective malign interference campaigns requires significant infrastructure. Because crypto is mistakenly perceived as anonymous and untraceable, some malign actors pay for these technology services using cryptocurrency, hoping to hide their activity.”
Iran’s Growing Cyber Influence Operations
Chainalysis highlighted that malign influence operations are not limited to Russia. In recent years, Iran has significantly expanded its cyber influence activities to further its geopolitical objectives. Islamic World News (ISWN), a partner of SouthFront, is a media outlet reportedly linked to the Islamic Revolutionary Guard Corps (IRGC). It operates militaristic social media channels, including Telegram, to promote pro-Iranian government and military propaganda.
Both open-source research and on-chain activity suggest a connection between ISWN and SouthFront. The entity seeks donations in BTC, BCH, ETH, XRP, DOGE, SOL, TRX, and SHIB. Chainalysis discovered that transfers from SouthFront and ISWN to exchanges may indicate efforts to convert cryptocurrency into fiat currency.
FAQ on Crypto-Linked Disinformation Campaigns and Election Interference
What are crypto-linked disinformation campaigns?
Crypto-linked disinformation campaigns are efforts by malicious actors to spread false information and disrupt democratic processes using cryptocurrency to fund and obscure their activities. These campaigns often target specific groups to influence public opinion and election outcomes.
How were crypto-linked disinformation campaigns used in the 2020 election?
In the 2020 US presidential election, actors like Russia-based SouthFront, sanctioned by OFAC, used disinformation campaigns to interfere with the election. They received funding through cryptocurrency donations to support their operations and avoid detection by financial regulators.
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