Hamas Turns to Tron for Financing Attacks
The Hamas terrorist organization has shifted its cryptocurrency operations from Bitcoin to Tron, a faster and more cost-effective blockchain. This move allows the Iran-backed militant group to finance its attacks against Israel using a new cryptocurrency network.
Increase in Tron Wallet Seizures
Financial crime experts and blockchain specialists have discovered that more designated terror organizations, including those recognized by the U.S. and Israel, are conducting crypto transfers on Tron. Israeli security agencies have seized a significant number of Tron wallets linked to these groups.
Rise of Tron, Fall of Bitcoin
Between July 2021 and October 2023, the Israeli National Bureau for Counter-Terror Financing froze over 143 Tron wallets associated with terrorist activities. Analysts have observed a decline in the targeting of Bitcoin addresses coinciding with the rise in seizure of Tron wallets. This suggests that terrorist organizations are favoring Tron over Bitcoin.
Tron’s Appeal to Terrorist Organizations
Merkle Science CEO Mriganka Pattnaik has confirmed that on-chain data indicates terrorist groups are choosing Tron due to its stability, low fees, and faster transaction times. The network’s favorable characteristics make it an attractive option for financing their operations.
Iran’s Support for Terrorist Groups
Iran supports multiple terror organizations, including Lebanon’s Hezbollah and the Islamic Jihad, in addition to Hamas. The Israeli National Bureau for Counter-Terror Financing has seized numerous Tron wallets connected to Hezbollah and Islamic Jihad alongside Hamas.
Hamas’ Shift Away from Bitcoin Donations
In April, Hamas announced that it would no longer accept bitcoin donations due to concerns about donor safety. However, the group continues to receive funds in Ether and Tether. While the specific crypto networks or assets involved in the seizure of Dubai Co. are undisclosed, Reuters interviews suggest that Tron was used by some users.
Tron’s Dominance for USDT
Tron has become the dominant blockchain for Tether (USDT), with the stablecoin reaching all-time highs on the network in 2023.
Hot Take: Hamas Turns to Tron for Crypto Financing
Hamas has shifted its cryptocurrency operations to Tron, a faster and cheaper blockchain, to finance its attacks against Israel. This move is supported by evidence of increased Tron wallet seizures by Israeli security agencies. The shift from Bitcoin to Tron suggests that terrorist organizations are favoring the latter for its stability, low fees, and faster transactions. It is notable that Iran supports multiple terror organizations, including Hezbollah and Islamic Jihad alongside Hamas. While Hamas has ceased bitcoin donations, it continues to receive funds in Ether and Tether. Tron has also emerged as a dominant blockchain for USDT.
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