Financing the January 6th Attack

I was asked by the January 6th committee to submit a report on how the riot / attack was financed. Now, for the first time ever, I’m making it available, along with a webinar I did on the topic.

Executive Summary

In recent years, there has been a rise in violent far-right extremist groups, movements, and inspired individuals (also commonly referred to as ideologically-motivated violent extremists) conducting attacks, causing disruption and disorder, and in some cases, seeking to undermine or overthrow democratically elected governments. Some of the individuals associated with these movements have perpetrated attacks, like the Quebec mosque attack in Canada, while others have perpetrated violence under the guise of protest, counter-protest, and marches. On January 6^th, 2021, this culminated in an attempted insurrection at the US Capitol building in Washington, D.C. Questions have rightly been raised about how this attack was organized and financed.

This report seeks to answer the question of financing. Using a combination of open-source materials, news reporting, and some primary documents, this report draws together disparate information about how the individuals, influencers, political operatives, and groups and movements financed their activities leading up to and on January 6^th. This report uses an analytic framework first developed to explore terrorist financing to illustrate how the insurrection was financed. This framework explores how funds were raised, used, moved, stored, managed, and obscured for the attack. By extending the analysis beyond simple fundraising, this report seeks to identify the other mechanisms and methods involved in financing January 6^th, with an eye towards identifying disruption or intervention strategies for this evolving issue.

The January 6th insurrection was financed through various methods, including individual donors, crowdfunding campaigns, and self-funding. The insurrectionists used these funds to travel to Washington D.C., purchase weapons and gear, and hold events. Following the events of January 6th, they also used funds to cover legal fees.

While the attack on the Capitol was significant, the costs were distributed among many participants and donors. This report explores how the insurrection was financed and provides recommendations on how to counter the financing of future events.

Fundraising Methods

The insurrectionists primarily relied on three methods of fundraising:

• Individual donors, such as Alex Jones, who donated over $146,000 and arranged for an additional $300,000 donation.

• Crowdfunding campaigns on platforms like GiveSendGo and GoFundMe. While many of these campaigns were shut down, they raised tens of thousands of dollars.

• Self-funding, where individuals covered their own travel and related expenses.

Groups Involved

Three main groups were involved in the insurrection:

Oath Keepers: This group has a more established structure with chapters across the United States. They raise funds through membership dues, charitable giving programs, and crowdfunding campaigns. They used funds to support their organization, travel to the Capitol, and purchase weapons and equipment.

Proud Boys: This loosely organized right-wing group relies heavily on self-financing. They utilize crowdfunding to finance large events and legal fees. They also operated a website that sold merchandise and accepted donations.

Three Percenters: This group is characterized by a shared anti-government belief system rather than a formal organization. They primarily rely on self-funding but may receive support from associated charitable organizations.

Use of Funds

The insurrectionists used their funds for a variety of purposes:

• Travel to the US Capitol

• Purchase weapons and gear

• Holding events, such as the Ellipse rally, which cost an estimated $500,000.

• Legal fees following the insurrection.

• Organizational support, including recruitment, propaganda, and maintaining membership for groups like the Oath Keepers.

Movement and Management of Funds

The insurrectionists primarily utilized the US financial system to move and store money. They relied on banks, financial technologies, and cash.

Oath Keepers: They used payment processors like PayPal, Stripe, and the US postal service. Funds are stored in bank accounts and potentially weapons. Financial control is centralized within the group's leadership.

Proud Boys: They have used various payment processors, though many have discontinued their services. Financial management likely occurs at the chapter or individual level.

Three Percenters: Due to their decentralized nature, they likely use personal methods like bank accounts, credit cards, and cash.

Countering Insurrection Financing

The report outlines several recommendations to prevent the financing of future insurrections and violent far-right extremism:

• Revoke tax-exempt status for organizations advocating for the overthrow of the government.

• Prohibit the use of payment processors, website hosting companies, and crowdfunding platforms for activities aimed at overthrowing the government.

• Hold payment processors, banks, and other companies accountable for providing services to individuals and organizations involved in violent extremism.

• Consider creating a domestic terrorist proscription process to enable financial sanctions against these groups.

• Enforce existing terrorist listings and prevent the provision of financial services to listed entities.

• Consider internationally listing the Proud Boys, Oath Keepers, and Three Percenters as terrorist entities.

The financing of the January 6th attack highlights the challenges posed by extremist financing. Addressing this issue requires a multifaceted approach involving government action, corporate responsibility, and international cooperation.

Timeline of Events

This timeline focuses on the financial activities of the Oath Keepers, Proud Boys, and Three Percenters leading up to and following the January 6th insurrection.

Pre-2021:

• 2009: Stuart Rhodes founds the Oath Keepers. The group begins raising funds through membership dues, merchandise sales, and charitable giving programs.

• 2016: A Three Percenter leader in Idaho is accused of misusing funds.

• 2017:

  • The Portland Branch of the Republican Party allows Oath Keepers and Three Percenters to provide security at public events.

  • A Colorado County GOP member hires militia groups, including possibly the Oath Keepers and/or the Three Percenters, for security.

  • The Oath Keepers provide disaster relief following hurricanes in Texas, Florida, and Puerto Rico.

• 2019:

  • The Oath Keepers' Indiana chapter is enrolled in Kroger's Community Rewards Program and Amazon's "AmazonSmile" program.

  • Three Percenter affiliated "charitable" organizations allegedly sponsor rallies.

2020:

• Analysis reveals that Nick Fuentes, a white nationalist figure, received a large Bitcoin donation worth approximately $522,000 a month before the Capitol riot.

2021:

• January 5th: Alex Jones arranges for Julie Jenkins Fancelli to donate $300,000 to cover the majority of the $500,000 cost for the Ellipse rally.

• January 6th:

  • The Ellipse rally takes place, costing approximately $500,000.

  • The Oath Keepers, Proud Boys, and Three Percenters participate in the insurrection at the US Capitol.

  • Proud Boys leader Enrique Tarrio, arrested before the attack, establishes a defense fund on GiveSendGo and raises over $113,000 in one week.

• Post-January 6th:

  • The Oath Keepers and Proud Boys solicit donations for legal defense funds via crowdfunding platforms.

  • The Oath Keepers continue fundraising, raising approximately $15,000 in May 2021 through a crowdfunding campaign.

  • Many payment processors, including PayPal and Stripe, discontinue service to the Oath Keepers and Proud Boys.

  • The Oath Keepers resort to receiving membership dues through the mail system.

2022:

• May: The Oath Keepers Educational Foundation and Oath Keepers United have their tax-exempt status revoked.

• July: The Proud Boys' fundraising website is suspended, presumably by the hosting provider.

Ongoing:

• The Oath Keepers, Proud Boys, and Three Percenters continue to operate in the US.

• They continue to raise funds through various means, including merchandise sales and crowdfunding campaigns.

• Funds are used for legal defenses, organizational activities, and further events.

We’re back tomorrow with more news and analysis you won’t find anywhere else, so stay tuned!