Blockchain analytics firm Elliptic says there is no evidence that Hamas has received significant volumes of cryptocurrency donations, emphasizing that crypto data it provides on the matter has been misrepresented. Noting that crypto accounts linked to Hamas have been seized or frozen, Elliptic says: “This illustrates the weakness of crypto as a terrorism fundraising tool. The transparency of the blockchain allows illicit funds to be traced, and in some cases linked to real-world identities.”
Hamas’ Crypto Amounts Raised ‘Tiny’ Compared to Other Funding Sources
Blockchain analysis provider Elliptic published a blog post on Wednesday to set the record straight regarding crypto crowdfunding by Hamas, the military organization currently at war with Israel. This clarification followed numerous media reports claiming that Hamas had raised significant funds in cryptocurrency, including an article in The Wall Street Journal titled “Hamas Militants Behind Israel Attack Raised Millions in Crypto.”
Elliptic emphasized:
There is no evidence to support the assertion that Hamas has received significant volumes of crypto donations.
The Wall Street Journal article has been referenced by various individuals, including Senator Elizabeth Warren and more than 100 U.S. lawmakers who jointly sent a letter to the White House and the U.S. Department of the Treasury, urging them to take action against crypto citing its use by Hamas. “In the months leading up to their brutal and horrific October 7th attack on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised millions of dollars in crypto — evading U.S. sanctions and funding their operations. Indeed, between August 2021 and this past June, the two groups raised over $130 million in crypto,” wrote Warren and her fellow lawmakers.
However, Elliptic stressed: “There is no evidence to suggest that crypto fundraising has raised anything close to this amount, and data provided by Elliptic and others has been misinterpreted.”
In order to clear up confusion, Elliptic said that it has “engaged with the Wall Street Journal to correct misinterpretations of the level of crypto fundraising by Hamas” and has been “in discussions with the office of Senator Warren to ensure that the relevant parties have a proper appreciation of the complexities and nuances of analyzing these wallets.” Noting that “A full understanding of blockchain analysis and the context of any analysis is needed when using these insights to draw conclusions,” Elliptic said:
We have spoken to representatives of the lead signatory, Senator Warren, as well as the authors of the Wall Street Journal article, to clarify this.
While acknowledging that “Over the past few years, Hamas has begun to experiment with cryptocurrency as a means to crowdfund from the public through social media,” Elliptic clarified: “The unique traceability of these assets has meant that the amounts raised remain tiny compared to other funding sources.”
Furthermore, the blockchain analytics company highlighted that various cryptocurrency wallets associated with Hamas have been seized, and centralized crypto exchanges are collaborating with law enforcement agencies to freeze accounts connected to illicit activities. “This illustrates the weakness of crypto as a terrorism fundraising tool. The transparency of the blockchain allows illicit funds to be traced, and in some cases linked to real-world identities,” the firm described.
Elliptic further detailed that since the Hamas attacks of Oct. 7, the most prominent public crypto fundraising campaign has been operated by a pro-Hamas news organization, Gaza Now. However, the firm said only $21,000 in cryptocurrency has been donated since Oct. 7, and much of this has been frozen. On Oct. 9, Gaza Now sent around $2,000 of the donated cryptocurrency to an exchange, where it was promptly frozen, the firm added, noting that around $9,000 in USDT donations were also frozen by Tether.
In contrast, much more funds have been raised to help people in Israel, the blockchain analytics firm additionally pointed out, stating:
Crypto fundraising for humanitarian causes in Israel is flourishing. For example, Crypto Aid Israel had received over $185,000 in crypto donations by October 19th to support those impacted by the attacks.
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