Mr Fanusie points to recent online activity shows that some jihadist groups are soliciting bitcoins, which can be acquired and spent without any government or banking intermediary.
Although the technology is cutting-edge, the method is tried-and-tested with so-called “news” outlets used to promote al-Qaida or Islamic State (IS) prompting readers to send funds “anonymously” to specific bitcoin addresses.
The former CIA man points to a terror funding organisation called al-Sadaqah (Arabic for “the voluntary giving”) by early November had started an English-language social media fundraising campaign to supply fighters with weapons and other resources via Facebook.
Mr Fanusie traced the transaction across a social media platform called Telegram and writes: ”On November 30, someone sent 0.075 bitcoin, which was worth about $685 then, to al-Sadaqah’s bitcoin address. The next day, al-Sadaqah’s address sent all the funds (which, due to Bitcoin’s price increase, was worth $803 by then) to another address.
Mr Fanusie writes that: “This shows some technical sophistication on the part of that site’s administrators, because they apparently have eliminated their dependence on digital currency exchange services”.
Similar cases where bitcoin has been used to support global terror are being reported and earlier this week an American woman was accused of laundering bitcoin and other cryptocurrencies to help ISIS, according to federal prosecutors.
Zombie Shahnaz, a 27-year-old Pakistani-born US resident, was being held without bail following the formal reading of her charges on Thursday.
The 27-year-old was charged with bank fraud, conspiracy to commit money laundering and money laundering.
“These transactions were motivated to benefit ISIS, which the defendant ultimately sought to join in Syria”, the court added.
According to Mr Fanusie, bitcoin is still not a reliable source of funding for jihadists but the former CIA man says that with the cryptocurrency industry still at an experimental stage, if this technology is going to develop, its growth must be accompanied by awareness of how terrorists will try to exploit it.