Elliptic researchers refute the idea that Hamas raised huge cryptocurrency funds. Since October 7, only $21,000 in cryptocurrency contributions have been made, most of which were blocked. Tether and Binance stated they had suspended Hamas accounts. The major crackdown was completed by Israel and Binance together freezing millions of dollars.
A screenshot of Elliptic report published on Elliptic official blog.
Blockchain Transparency Restricts Hamas’s Crypto Fundraising Success
October 7th showed how terrorist groups like Hamas raise money. Recent years have seen Hamas investigate Bitcoins as social media financing. Blockchain technology has raised less money than other investment channels due to its transparency.
Hamas began requesting cryptocurrency donations in 2019, peaking in May 2021 during fighting. Security concerns forced Hamas to stop public crypto donations in April 2023. The collective was worried about escalating attacks against resistance crypto supporters. The following occurred after US law enforcement seized crypto wallets to combat money laundering, donor identification, and fundraising website closure. Israel’s National Bureau for Counter-Terror Financing (NBCTF) began confiscating orders for Hamas-linked crypto wallets in 2021, working with exchanges.
This instance illustrates cryptocurrency terrorism financing restrictions. Blockchain helps identify illicit cash and link them to people or companies. Additionally, crypto dealers use exchanges and stablecoins. These sites freeze illegally obtained funds at police request. Blockchain analytics can also aid prevention.
Crypto Aid Surges for Israeli Humanitarian Causes Amid Recent Events
Gaza Now, a pro-Hamas news organization, increased Bitcoin funding after October 7. Since October 7, $21,000 in crypto has been contributed. Much of this money has been banned by crypto firms and scholars, prohibiting Gaza Now from using them. Gaza Now sent over $2,000 in donated cryptocurrency to a digital currency exchange on October 9th, possibly to cash out. These funds were promptly blocked. Stablecoin Tether froze $9,000 in contributions.
Israeli crypto fundraising for humanitarian causes has surged. On October 19, Crypto Aid Israel received approximately $185,000 in crypto donations for attack victims.
In recent weeks, politicians and journalists have depicted public cryptocurrency fundraising as a key source of Hamas and other terrorist funding. Compared to previous ways, public cryptocurrency fundraising campaigns have not raised much for terrorist groups.
This clarification doesn’t devalue these suppliers. Some minor crypto traders are deemed terrorist enterprises because they fund Hamas and other terrorist organizations. What’s more, more research is needed to understand how terrorists buy infrastructure with crypto assets.