Al-Fassel | 2025-11-08

Once reliant on oil revenues and taxation within controlled regions, the terrorist group has now adopted decentralized methods to sustain its operations.

These methods primarily include criminal activities such as extortion, scams, and the unlawful use of cryptocurrencies.

This shift not only reflects their adaptability but also exposes a stark contradiction between their actions and their proclaimed religious mission.

The switch from oil revenues to crypto

During its peak, ISIS generated billions from oil sales, "taxation", and looting in areas under its control.

With the loss of territory, these revenue streams dried up, forcing the group to adapt.

Today, ISIS relies heavily on extortion, fraud and deception, and theft to fund its activities.

Extortion has become a cornerstone of their strategy.

Its operatives demand payments from businesses and individuals in areas they infiltrate, often under the guise of "protection fees."

Cryptocurrencies have emerged as a key tool in their financial arsenal.

Digital currencies like Bitcoin provide anonymity and global reach, allowing ISIS to move funds without relying on traditional banking systems.

Online fundraising campaigns, often disguised as humanitarian efforts, funnel cryptocurrency donations to the group.

For example, the FBI has issued warnings about foreign terrorist organizations (FTOs).

Groups such as ISIS and its supporters often create fake charities.

Fraudulent charities that are used to conduct fundraising schemes on social media platforms.

These schemes deceive individuals into providing funds that subsidize ISIS operations.

The group’s reliance on deception shows its willingness to manipulate and exploit others for financial gain.

This practice opposes Islamic teachings, which emphasize integrity and truthfulness.

Manipulating religion for financial gain

ISIS claims to represent Islam, yet their financing methods contradict fundamental Islamic teachings.

Extortion, fraud, and theft are prohibited in Islam, as are deceptive practices that harm others.

Religious scholars worldwide have condemned ISIS’s actions as manipulative distortions of Islamic principles.

In an interview with Reuters, Egypt's Grand Mufti Shawki Allam stated that extremist and violent groups pose a danger to Islam and Muslims.

He emphasized that "group like this poses a danger to Islam and Muslims, tarnishing its image while shedding blood and spreading corruption."

Islamic law emphasizes justice, honesty, and the welfare of communities.

By engaging in criminal activities, ISIS undermines these values.

Their use of cryptocurrencies to fund violence further highlights their disregard for ethical and religious norms.

Scholars argue that ISIS’s financial strategies are driven by greed and power, not religious devotion.

This disconnect between ISIS’s claims and actions has fueled widespread rejection of their ideology.

Muslim communities and leaders have worked to expose their hypocrisy, emphasizing that Islam promotes compassion, not exploitation and violence.

As the world grapples with the evolving threat of terrorism, understanding how groups like ISIS fund their activities is crucial.

By exposing their methods and hypocrisy, law enforcements around the word can better counter their influence and dismantle their financial networks.