A blockchain analytics firm that specializes in preventing crypto crimes is refuting claims that Palestinian militant group Hamas has raised millions in donations through digital asset fundraising campaigns.
In a statement, Elliptic said there is no data to support the view of crypto as a major source of funding for Hamas and other terrorist groups.
Earlier this month, the Wall Street Journal published an article claiming that Hamas had raised millions in funding through crypto. US lawmakers subsequently cited the report in their letter to the White House and US Treasury Department, saying the use of crypto to finance terrorism poses a threat to national security.
“There is no evidence to support the claim that Hamas has received significant amounts of crypto donations.”
In response to claims that Hamas and the Palestinian Islamic Jihad (PIJ) that attacked Israel on October 7 received $130 million in crypto donations between August 2021 and June 2023, Elliptic says the actual money raised is nowhere close to the reported figures.
“There is no evidence to suggest that crypto fundraising has raised anything close to this amount, and the data from Elliptic and others has been misinterpreted. We have spoken with representatives of the lead signatory, Senator Warren, as well as the authors of the Wall Street Journal article, to clarify this.”
Elliptic explains why crypto is not a viable terrorist fundraising tool.
“The transparency of the blockchain allows illicit funds to be traced and in some cases linked to real-world identities. Furthermore, cryptocurrency users typically use centralized services such as exchanges or stablecoins. These services respond to requests from law enforcement agencies to freeze assets associated with illegal activities, or do so proactively based on insights from blockchain analytics.”
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Generated image: Midjourney