Are Hamas terrorists using crypto to raise money?
A recent report claimed that Hamas and Palestinian Islamic Jihad (PIJ) had raised $130 million through crypto. However, blockchain surveillance experts at Elliptic have debunked these claims, stating that there is no evidence to support the assertion that Hamas has received significant crypto donations. While Hamas has experimented with cryptocurrency as a means of crowdfunding, the amounts raised remain small compared to other funding sources. In fact, recent seizures of crypto from Hezbollah-linked accounts and the closure of Hamas’s crypto fundraising program illustrate the weakness of crypto as a terrorism financing tool.
The truth behind the exaggerated figures
Confusion may have arisen from Elliptic’s analysis, which showed that frozen wallets linked to PIJ had received transactions totaling $93 million. However, it is unclear whether these funds belonged to the terrorist group or were used by small service providers such as brokers. The Wall Street Journal’s report was cited by Congress in calling for more action against crypto-related terrorist financing, with Senator Elizabeth Warren leading the charge. However, Elliptic’s findings cast doubt on the extent to which cryptocurrencies are being used by terrorist organizations.
Hot Take: Crypto’s Limited Role in Terrorism Financing
The claims of Hamas raising tens of millions of dollars through crypto have been debunked by blockchain surveillance experts at Elliptic. While Hamas has experimented with cryptocurrency for crowdfunding, the amounts raised remain small compared to other funding sources. Recent seizures of crypto from Hezbollah-linked accounts and the closure of Hamas’s crypto fundraising program demonstrate the limited effectiveness of cryptocurrencies in financing terrorism. This highlights the importance of continued efforts by authorities and compliant exchanges to prevent illicit use of cryptocurrencies for nefarious purposes.
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