CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER EXTREMIST FUNDRAISING
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CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER EXTREMIST FUNDRAISING Hot Brief February 5th, 2022 Disclaimer: This publication contains summaries of open sources and does not represent the views of the Canadian Association for Security and Intelligence Studies Vancouver.
CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER Title: Extremist Fundraising Date: February 5th, 2022 Disclaimer: This publication contains summaries of open sources and does not represent the views of the Canadian Association for Security and Intelligence Studies Vancouver. 1. The de-platforming of the Ottawa Convoy’s GoFundMe campaign has arguably pushed fundraising to new platforms such as GiveSendGo and new payment systems including cryptocurrency (Warreth, 2019). The freezing of their funds has increased tribal bonds and identity affirmation which has the potential to strengthen the cohesion of the movement. While the Ottawa Convoy can no longer fundraise through GoFundMe, there are alternative methods of receiving donations including e-transfer, bitcoin, and alt-tech which face less scrutiny from the public and public safety agencies (GoFundMe. n.d.; Blockchain, n.d.; Pran, 2022). Examples: - As of February 5th, 2022, over $1 million has been raised from GiveSendGo (GiveSendGo, 2022). - After being deplatformed by GoFundMe, several cryptocurrency wallets have been identified and amount to over $200k CDN as February 5th, 2022. - One of these wallets was notably created by BJ Dicher (Blockchain, n.d.), co- organizer of original crowdfunding campaign (raised ~$50k CDN from 77 individuals). - A second wallet owned by an unidentified individual known as HonkHonkHODL (Tallycoin, n.d.) has raised ~$150k CDN from 2565 individuals. 2. Emerging technologies, in the form of crowdfunding platforms and cryptocurrencies, are reportedly providing alternative means for extremist groups to raise funds. While RWE groups previously relied on membership fees and large donations from wealthy sympathizers, the Internet has enhanced their fundraising capabilities by providing access to larger pools of donors (Steinau, 2018). Newly created payment processors have enabled RWE groups to raise funds, bypassing deplatforming efforts by legacy payment processors such as Paypal or Stripe. Examples - Gab, an alternative social media platform, has used Bitcoin, self-described as free speech money, accounting for 30% of its revenue as well as the production of Bitcoin guides to educate its supporters to use and donate Bitcoin. (Torba, 2019) 555 Burrard St. #700, Vancouver, BC, V7X 1M8 | https://VTSM.org | info@casisvancouver.ca 1
CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER - The Order of Dawn began cryptocurrency crowdfunding in 2018 for Monero where visitors were allowed to mine Mondero directly on their website to donate to the Order of Dawn. (Counter Extremism Project, 2019) They have since raised $6,600 to allegedly purchase firearms and explosives to equip a volunteer army. Crowdfunding platforms include KickStarter, Patreon, IndieGogo, and GoFundMe, with alternatives such as Hatreon, WeSearcher, Counter Fund, and MakerSupport used when banned from the former. 3. Cryptocurrencies and online payment processors allow RWE to circumvent efforts to restrict fundraising. Under pressure from activist organizations, online payment services such as Paypal and Apple Pay have banned and restricted access to their services by individuals and groups linked to RWE, prompting an interest in alternative currencies in bitcoin to raise funds for their operations (Musil, 2017). There have been major initiatives following public outrage towards the Charlottesville protests in 2017 to restrict and bar extremists from accessing their finances, networks, and social media accounts as well as demonetising content produced by actors designated as radicals (Carson, 2017; Montgomery, 2017; Musil, 2017; Saul, 2019). Examples: - A French Donor donated 28.15 Bitcoin (approximately $522,000 USD) to 22 RWE entities through “Extremist Legacy Wallet”, with RWE influencer receiving 13.5 Bitcoin ($250,000 USD) (Chainalysis Team, 2021). - Brenton Tarrant, responsible for the Christchurch shootings, donated A$6,600 to RWE entities prior to his attack. He had declared support for their “great work” and was declared a “saint” by white nationalists (Dearden, 2020). 4. Online crowdfunding allows RWE entities to cover hosting fees for RWE online communities, finance merchandise production and events as well as financially support influencers who create and disseminate extremist content. (Anti-Defamation League, 2017). The use of crowdfunding for legal defense funds could arguably reduce the cost of conducting unlawful activities by extremist actors in the pursuit of their goals. Examples: - Charlottesville, Virginia “Unite the Right” protests utilized crowdfunding to sponsor travelling costs to attend the rally under guise of “seeing their brothers” (Lecher, 2017; Steinau, 2018). - Kyle Rittenhouse, an individual who fatally shot two Black Lives Matter protesters in Kenosha, Wis., netted almost $600,000 to pay his legal fees (GiveSendGo, 2020). 555 Burrard St. #700, Vancouver, BC, V7X 1M8 | https://VTSM.org | info@casisvancouver.ca 2
CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER 5. Cryptocurrencies are not entirely anonymous. The transparency of cryptocurrency blockchains can provide a means of tracking transactions and donations which could be used to develop methods of preventing funds from reaching RWE entities. The donations made by the French donor were tracked to uncover the identity of the recipients, the medium used, and amounts in bitcoin. The donor had sent 28.15 Bitcoin, valued at approximately $522,000 USD, to an intermediary labeled “Extremist Legacy Wallet”, and to 22 RWE recipients (Chainalysis Team, 2021). RWE influencer Nick Fuentes received 13.5 Bitcoin, valued at $250,000 USD (Chainalysis Team, 2021). 555 Burrard St. #700, Vancouver, BC, V7X 1M8 | https://VTSM.org | info@casisvancouver.ca 3
CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER References: Anti-Defamation League. (2017). How white supremacists raise their money. Anti-Defamation League. https://www.adl.org/sites/default/files/documents/adl-report-funding-hate-how-white- supremacists-raise-their-money.pdf. Blockchain. (n.d.). https://www.blockchain.com/btc/address/1Psn2zaGjknUx9QF6hzEBqtyoDk12LyFtz?page=2 Carson, E. (2017, December 4). Here's where Nazi sympathizers go to raise money. CNet. https://www.cnet.com/news/neo-nazi-sympathizers-crowdfunding/. Chainalysis Team. (2021, January 14). Alt-Right groups and personalities involved in last week’s capitol riot received over $500K in bitcoin from French donor one month prior. Chainalysis. https://blog.chainalysis.com/reports/capitol-riot-bitcoin-donation-alt-right-domestic-extremism. Counter Extremism Project. (2019, June 26). Facebook's new cryptocurrency will be ripe for misuse. Retrieved from https://www.counterextremism.com/blog/facebook’s-new-cryptocurrency-will- be-ripe-misuse Dearden, L. (2020, December 8). Christchurch shooter donated thousands to far-right groups and websites before attack, report shows. Independent. https://www.independent.co.uk/news/world/australasia/brenton-tarrant-christchurch- donations-generation-identity-b1768056.html. GiveSendGo (2020, August 27). Raise money for Kyle Rittenhouse Legal Defense. https://www.givesendgo.com/GUCZ GiveSendGo [@givesendgo]. (2022, February 5). We have been under heavy DDOS and bot attacks. In spite of all of this we still have managed to raise funds 5X faster than the gfm did. GFM raised 10mil in 3 weeks. GSG campaign has already raised over 1.1mil in just over 12 hours! [Tweet]. Twitter. https://twitter.com/GiveSendGo/status/1489983077912924160?ref_src=twsrc%5Egoogle%7Ctwc amp%5Eserp%7Ctwgr%5Etweet GoFundMe. (n.d.). Canada Unity Forum. Retrieved from https://canada-unity.com/community/general- chat/gofundme/ Lecher, C. (2017, August 30). Neo-Nazis disguised GoFundMe campaign as a ‘family reunion’ in Charlottesville. The Verge. https://www.theverge.com/2017/8/30/16227142/gofundme- campaigns-charlottesville-unite-the-right. 555 Burrard St. #700, Vancouver, BC, V7X 1M8 | https://VTSM.org | info@casisvancouver.ca 4
CANADIAN ASSOCIATION FOR SECURITY AND INTELLIGENCE STUDIES VANCOUVER Montgomery, B. (2017, August 2). PayPal, GoFundMe, And Patreon banned a bunch of people associated with the Alt-Right. Here’s why. BuzzFeed News. https://www.buzzfeednews.com/article/blakemontgomery/the-alt-right-has-a-payment- processor-problem#.lx4z4ORxy. Musil, S. (2017, August 16). Apple Pay, PayPal cut off sites linked to white supremacists. CNet. https://www.cnet.com/news/apple-pay-paypal-cut-off-sites-linked-to-white-supremacists/. Pran. [@pransauce]. (2022, February 5). they have raised 1.2 million already despite the site constantly being down. They need to fix the darn site. @GiveSendGo. Tweet. https://twitter.com/PranSauce/status/1490066237434564610?s=20&t=kznmUTPgOwojdcAEaNui 3Q Saul, I. (2019, July 18). This Twitter alternative was supposed to be nicer, but bigots love it already. Forward. https://forward.com/news/427705/parler-news-white-supremacist-islamophobia-laura- loomer/. Steinau, M. (2018, January 11). How neo-Nazis and right-wing extremists profit from bitcoin. Business Insider. https://www.businessinsider.com/neo-nazis-and-right-wing-extremists-profit-from-the- bitcoin-hype-2018-1?r=MX&IR=T. Tallycoin. (n.d.). Bitcoin for Truckers. https://tallyco.in/s/lzxccm/ Torba, A. (2019, October 07). Bitcoin is free speech money, Gab will introduce it to millions of people. Retrieved from https://news.gab.com/2019/10/07/bitcoin-is-free-speech-money-gab-will- introduce-it-to-millions-of-people/ Warreth, S. (2019, November 28). Crowdfunding and cryptocurrency use by far-right and Jihadi groups. VOX – Pol. Retrieved from https://www.voxpol.eu/crowdfunding-and-cryptocurrency-use-by-far- right-and-jihadi-groups/ 555 Burrard St. #700, Vancouver, BC, V7X 1M8 | https://VTSM.org | info@casisvancouver.ca 5
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