TRM Labs tracks on-chain convictions for ISIS financing, sets precedent in Indonesia

Blockchain intelligence company TRM Labs has recently issued a statement saying that, between 2024 and 2025, an Indonesian court successfully convicted three terrorism financing facilitators using on-chain cryptocurrency evidence. This is the first time an Indonesian court has accepted wallet addresses, transaction history, and on-chain fund-flow direction as key grounds for charging terrorism financing, marking an important turning point in Southeast Asia’s crypto law-enforcement framework.

Three Indonesian Conviction Cases: How On-Chain Data Became Core Evidence

(Source: TRM Labs)

In its statement, TRM Labs said: “The Indonesian court has proven that crypto evidence—wallet addresses, transaction history, and on-chain fund movement—not only can be adopted by the court, but also can serve as a key basis for charging terrorism financing.”

The Indonesian Financial Intelligence Unit and the anti-terror police unit Densus 88 conducted a comprehensive analysis of the relevant on-chain data and officially submitted the results to the Indonesian court. In all three cases, the court accepted blockchain data, which is still unprecedented in terrorism financing litigation in the Southeast Asian region.

TRM Labs also noted that the terrorism financing network has long used cryptocurrencies as its preferred transfer channel. The fundamental reason is that authorities subject such channels to far less scrutiny than traditional fiat currency channels. The fact that this conviction case has been upheld is precisely a concrete reflection of this shift in the law-enforcement landscape.

Three Key Elements of On-Chain Evidence

Wallet address identification: directly tracking the fund send/receive addresses tied to terrorism-related activity

Reconstruction of complete transaction history: building an uninterrupted audit path showing how funds move from the sender to the final destination

Cross-platform fund flow analysis: tracking the full link of funds as they move through local exchanges and foreign platforms before flowing into a specific organization

The Complete Transfer Path of a $49,000 Stablecoin

With the help of TRM Labs’ on-chain analysis, Indonesian authorities fully reconstructed the fund transfer chain for one of the defendants. The defendant first converted funds into a stablecoin on a local exchange, then transferred it to an overseas platform through 15 separate transactions. Ultimately, it flowed into ISIS-related terrorism fundraising activities, involving an amount exceeding $49,000.

The design intent of such distributed transaction pathways is to increase the difficulty of tracing funds. However, the immutable records on public blockchains still provide law-enforcement agencies with a complete digital audit path, which became the direct technical support for the conviction in this case.

Southeast Asia’s Law-Enforcement Landscape: Blockchain Intelligence Capabilities Accelerate Expansion

TRM Labs emphasized that Indonesia is not the only Southeast Asian country actively strengthening blockchain intelligence capabilities. Financial intelligence units and law-enforcement agencies in Singapore and Malaysia are also building technical foundations for tracking cryptocurrency flows, and coordination mechanisms between the public and private sectors are gradually taking shape.

Meanwhile, crypto law-enforcement actions in Southeast Asia continue to expand. On April 1, Cambodian and Chinese officials jointly arrested Li Xiong, a key member of the Huione Group. The group’s businesses involve providing services for a Cambodian scam center, and it is alleged that it stole cryptocurrency assets from victims worldwide through scam schemes such as “pig butchering.” Li Xiong was later extradited to China, where he faced charges of fraud and money laundering. Chen Zhi, the chairman of the parent company of the Huione Group—Prince Group (which has the Energy Transfer Group under it)—was also arrested three months after the extradition.

In a report this February, TRM Labs said that the stablecoin amount obtained by illegal entities in 2025 was approximately $141.0 billion, setting a new five-year high. This further highlights the urgency of strengthening on-chain law-enforcement capabilities.

Frequently Asked Questions

What role does TRM Labs play in this conviction case?

TRM Labs is a blockchain intelligence company that provides on-chain fund-tracking analysis tools and data to law-enforcement agencies. In three conviction cases in Indonesia, TRM Labs provided key technical analysis support, helping authorities fully reconstruct the transfer path of funds from a local exchange into ISIS-related activities.

How does the Indonesian court accept on-chain crypto evidence?

Based on the results of on-chain analysis, the Indonesian Financial Intelligence Unit and the anti-terror police unit Densus 88 submitted complete digital evidence, including wallet addresses, transaction history, and cross-platform fund flow direction. In all three cases, the Indonesian court accepted such on-chain data as a key basis for charging terrorism financing.

How large is the funding scale obtained by illegal entities through stablecoins in 2025?

According to TRM Labs’ report this February, the stablecoin amount obtained by illegal entities in 2025 was approximately $141.0 billion, setting a new five-year high. This reflects that the trend of stablecoins being widely used in illegal financial activities continues to worsen, and it also highlights the strategic importance of blockchain intelligence capabilities in global law-enforcement compliance.