Elliptic: Only $21,000 Donated to Hamas through Crypto
The blockchain analytic firm Elliptic has clarified that its data was misinterpreted, and only $21,000 has been donated to the militant organization Hamas through cryptocurrency. Unlike traditional finance, crypto offers transparency and traceability. There were reports that amidst the Israel-Hamaz conflict, the militant organization received millions in donations through cryptocurrency. However, Elliptic has cleared the air.
US Senator Elizabeth Warren’s Anti-Crypto Bill
After the reports about Hamas receiving millions in crypto donations, US Senator Elizabeth Warren pushed for an anti-crypto bill. She emphasized the need to combat crypto-financed terrorism by choking off financing. However, Elliptic has provided evidence to counter these claims.
Elliptic Clears the Confusion
Elliptic stated that “only $21,000 in cryptocurrency has been donated since Oct. 7.” Additionally, various crypto service providers froze a significant portion of this amount. Tether froze $9,000 in stablecoin donations, and authorities have seized donated crypto over time. As a result, Hamas decided to stop raising funds through cryptocurrency in April 2023.
Criticism and Clarification
Elliptic engaged with Senator Elizabeth Warren and authors of a Wall Street Journal (WSJ) article to clarify the situation. Prominent figures in the crypto industry like Balaji Srinivasan and Nic Carter criticized the WSJ’s reporting on Hamas funding.
Hot Take: Elliptic’s Clarification Puts Hamas Crypto Donations in Perspective
Contrary to initial reports, Elliptic’s analysis reveals that only $21,000 has been donated to Hamas through cryptocurrency. This significantly challenges the notion of substantial crypto financing for terrorist organizations. The transparency and traceability of crypto transactions provide valuable insights into the flow of funds, allowing authorities and blockchain analytic firms like Elliptic to identify and freeze suspicious donations. As the crypto industry strives for regulatory compliance and enhanced security measures, misconceptions about its role in illicit activities should be dispelled.
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