A blockchain forensic firm has stated that there is no evidence to suggest that Hamas is receiving significant cryptocurrency donations to fund its attacks against Israel. Elliptic, the firm in question, said that the amounts raised by Hamas "remain tiny," countering recent claims made by The Wall Street Journal and US lawmakers.
Rebuttal to Misinterpreted Data
Elliptic issued a statement on October 25, clarifying that there is no evidence to support the assertion that Hamas is receiving significant volumes of cryptocurrency donations. The firm's statement was in response to articles and letters written by The Wall Street Journal and US lawmakers, which Elliptic claims had misinterpreted data to make the case that cryptocurrency is widely used to fund Hamas' "terrorist" activities.
Example of a Hamas Fundraising Campaign
Elliptic cited a prominent Hamas cryptocurrency fundraising campaign operated by Gaza Now, a pro-Hamas news outlet. Since the Hamas attack on Israel on October 7, this campaign has only raised $21,000. Of that amount, $9,000 was frozen by stablecoin issuer Tether, and another $2,000 was frozen after being sent to a cryptocurrency exchange.
Correction of Misleading Statements
Elliptic reached out to The Wall Street Journal to correct a statement initially claiming that Hamas and Palestinian Islamic Jihad had raised over $130 million in cryptocurrency between August 2021 and June 2023. The WSJ later revised the statement to say "as much as $93 million" in an update on October 10. This WSJ article was cited in a letter written by Elizabeth Warren and over 100 other US lawmakers to the White House and the US Department of the Treasury on October 17.
Data Misinterpretation
Elliptic reiterated that its data was misinterpreted, and blockchain forensics firm Chainalysis also posted a blog on October 18 to address misconceptions circulating in the media. One wallet highlighted by the media reportedly received $82 million over 7 and a half months, but Chainalysis explained that only $450,000 was transferred to a known terror-affiliated wallet.
Cryptocurrency Fundraising Suspended
In April 2023, Hamas suspended cryptocurrency fundraising conducted through Bitcoin (BTC) due to concerns about the safety of donors. Additionally, Israel's National Bureau for Counter Terror Financing began issuing seizure orders for cryptocurrency wallets tied to Hamas and worked with exchanges to freeze accounts used by the group.
Crypto and Terrorism Fundraising
According to Elliptic, these events suggest that cryptocurrency is not an ideal means to facilitate terrorism fundraising. The firm believes that the data has been misinterpreted, and the amounts raised by Hamas through crypto donations remain relatively small.
Cointelegraph reached out to The Wall Street Journal for comment but did not receive an immediate response.
