Donations to Hamas-Linked Charities Surge Following Attack
After the attack on Israel by Hamas on October 7, there has been a significant increase in donations to charities associated with the resistance group. Israeli officials estimate that these donations have surged by around 70%. The exact amount of money cannot be independently confirmed. Stopping the flow of funds to Hamas is challenging due to the dispersed nature of the charity groups involved and their ability to change names and structures frequently.
Main Channels for Foreign Funds
The report highlights three main channels through which foreign funds reach Hamas: direct support from Iran, the informal Islamic banking system known as Hawala, and cryptocurrency. Iran reportedly provides an annual cash infusion of $70 million to $100 million to Hamas for military purposes. Additionally, Hamas diverts foreign aid intended for Gaza’s citizens to construct tunnels and bunkers.
Hawala System and Crypto Funding
The Hawala system, based on trust rather than traditional banking, facilitates the movement of money without relying on Western-style financial institutions. While some funds channeled through Hawala are intended for humanitarian needs in Gaza, Israel claims that a significant portion is diverted for military purposes by Hamas. Cryptocurrency has also emerged as a major source of funding for Hamas, with both charitable contributions and direct contributions being made.
Accusations Against Tron and Binance
Tron, a cryptocurrency company, has been accused of evading Israeli requests to cut off accounts and has been linked to operating in Iran. On the other hand, Binance has been credited for complying with requests. However, Binance’s recent $4.3 billion settlement with U.S. authorities raises concerns about allegations of failure to prevent and report suspicious transactions with terrorist groups like Hamas’ Al-Qassam Brigades.
No Evidence of Major Crypto Donations to Hamas
Contrary to claims made in an article published in The Wall Street Journal, blockchain analytics company Elliptic has refuted the assertion that Hamas received significant volumes of crypto donations. The data has been misinterpreted, and there is no evidence to support the claim that Hamas raised over $130 million in cryptocurrency between August 2021 and June 2022. This misinformation has been referenced by U.S. lawmakers, including Senator Elizabeth Warren, who called for crackdowns on cryptocurrencies due to their alleged use in funding Hamas operations.
Hot Take: Impact of Increased Donations on Hamas
The surge in donations to Hamas-linked charities following the attack on Israel raises concerns about the group’s financial capabilities. Despite efforts to stop the flow of funds, the dispersed nature of these charities makes it challenging to prevent them from receiving donations. With foreign funds coming through various channels like Iran, Hawala, and cryptocurrency, it is crucial for authorities and cryptocurrency companies to strengthen regulations and monitor transactions to prevent misuse. This situation highlights the ongoing struggle to combat terrorist financing and the need for international cooperation in addressing this issue.
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