Blockchain Forensic Firm Elliptic Debunks Claims of Hamas Using Crypto for Funding
According to blockchain forensic firm Elliptic, there is no evidence to support the assertion that Hamas, a Palestinian militant group, is receiving significant cryptocurrency donations to fund its attacks against Israel. In a statement released on October 25, Elliptic refuted recent articles and letters by The Wall Street Journal and US lawmakers that claimed cryptocurrency was widely used to finance Hamas’ “terrorist” activities.
Examining the Numbers
Elliptic cited a prominent fundraising campaign operated by Gaza Now, a pro-Hamas news outlet, which has only raised $21,000 since the Hamas attack on Israel on October 7. Of this amount, $9,000 was frozen by stablecoin issuer Tether, and another $2,000 was frozen after being sent to a cryptocurrency exchange. The firm emphasized that the amounts raised by Hamas remain relatively small.
Challenging Misinterpretations
The Wall Street Journal initially claimed that over $130 million in cryptocurrency was raised by Hamas and Palestinian Islamic Jihad between August 2021 and June 2023. However, Elliptic reached out to WSJ to correct this statement. The article was later revised to say “as much as $93 million” in an update on October 10. The WSJ article was also cited in a letter written by US lawmakers, including Elizabeth Warren, calling for strong action against cryptocurrency as a national security threat.
Data Misinterpretation
Elliptic reiterated that the data had been misinterpreted. It stated that politicians and journalists have portrayed public crypto fundraising as a significant source of funds for terrorist groups like Hamas; however, the data does not support this claim. The firm called for corrections to be made by WSJ and the US lawmakers who relied on incorrect information.
Blockchain Transparency
Both Elliptic and blockchain forensics firm Chainalysis have highlighted the transparency of the blockchain as a tool for tracing illicit funds. Chainalysis explained that a wallet highlighted by the media reportedly received $82 million, but only $450,000 was transferred to a known terror-affiliated wallet. Elliptic argued that events like Hamas suspending cryptocurrency fundraising and Israel seizing cryptocurrency wallets tied to Hamas show that crypto is not an ideal means for terrorism financing.
Hot Take: Cryptocurrency Donations to Hamas Remain Insignificant
Contrary to recent claims, blockchain forensic firm Elliptic has found no evidence to support the idea that Hamas is receiving significant cryptocurrency donations for its attacks against Israel. The amounts raised by Hamas through crypto fundraising campaigns remain relatively small, debunking misconceptions surrounding their use of cryptocurrency. Both Elliptic and Chainalysis emphasize the transparency of the blockchain in tracing illicit funds, making it difficult for terrorist groups to use crypto as a reliable source of financing. These findings challenge the notion that cryptocurrency poses a national security threat and calls for corrections from media outlets and lawmakers who have relied on inaccurate data.
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