Elliptic Debunks Claims of Significant Crypto Donations to Hamas
Blockchain analytics experts at Elliptic have dismissed reports suggesting that Hamas has received substantial cryptocurrency donations. The firm has explained that the related data has been misinterpreted regarding the alleged misuse of crypto in terror financing. On crypto accounts linked to Hamas having 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.”
Blockchain Experts Counter Misrepresentation of Hamas Crypto Donations
Blockchain analytics firm Elliptic, published a blog post on Wednesday, challenging the prevailing narrative of substantial crypto contributions to Hamas, the military organization currently embroiled in conflict with Israel. This post has been released to counter numerous media reports, including a headline in The Wall Street Journal, "Hamas Militants Behind Israel Attack Raised Millions in Crypto," which garnered global attention.
Elliptic debunked the assertion:
"There is no evidence to support the assertion that Hamas has received significant volumes of crypto donations."
The Wall Street Journal article got the attention of over hundred lawmakers, including Senator Elizabeth Warren. They collectively issued an urgent letter to the White House and the US Department of the Treasury, urging action against cryptocurrency and, citing its alleged use by Hamas. Their letter alleged that Hamas and Palestinian Islamic Jihad (PIJ) had managed to raise millions of dollars in crypto in the months leading up to their brutal October 7th attack on Israel. Warren and the lawmakers claimed that these groups had accumulated over USD 130 million in cryptocurrency between August 2021 and June 2023, evading US sanctions.
However, Elliptic has clarified:
"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 a bid to dispel any misunderstandings, Elliptic revealed its efforts to engage with The Wall Street Journal to rectify misinterpretations concerning the level of crypto fundraising by Hamas. The company has also been in discussions with Senator Warren's office to ensure that all involved parties possess a comprehensive understanding of the complexities and nuances involved in analyzing the crypto wallets. It has also underlined the importance of a full comprehension of blockchain analysis and its context. In conclusion, Elliptic added:
"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 Hamas's recent attempts at cryptocurrency crowdfunding through social media, Elliptic made it clear that the unique traceability of these assets meant that the amounts raised remained minuscule compared to other funding sources.
Crypto Wallets Linked to Hamas Seized
The blockchain analytics firm has pointed out that various cryptocurrency wallets linked to Hamas have been seized, and centralized crypto exchanges are cooperating with law enforcement agencies to freeze accounts associated with illicit activities. This highlights the limitations of cryptocurrency as a tool for terrorism fundraising, as the transparency of the blockchain enables the tracing of illicit funds and, in some instances, their connection to real-world identities.
Elliptic has revealed that the most notable public crypto fundraising campaign since the Hamas attacks on October 7 has been mobilized by Gaza Now, a pro-Hamas news organization. However, the firm disclosed that only USD 21,000 in cryptocurrency donations had been received since that date, with a significant amount of these funds being frozen. On October 9, Gaza Now transferred approximately USD 2,000 of the donated cryptocurrency to an exchange, where it was promptly frozen. The firm also noted that around USD 9,000 in USDT donations were frozen by Tether.
In stark contrast, considerably more funds have been raised to support individuals in Israel. The blockchain analytics firm underlined:
"Crypto fundraising for humanitarian causes in Israel is flourishing. For example, Crypto Aid Israel had received over USD 185,000 in crypto donations by October 19th to support those impacted by the attacks."
This clarification from Elliptic raises critical questions about the extent of crypto funding for Hamas. What is your take on the clarification by Elliptic about how much crypto Hamas has raised? Please share your thoughts and opinions in the comments section below.
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