Blockchain forensic agency Elliptic says there’s “no proof” that Hamas is receiving a big quantity of cryptocurrency donations to fund its assaults in opposition to Israel.
“There isn’t any proof to assist the assertion that Hamas has obtained important volumes of crypto donations,” Elliptic mentioned in an Oct. 25 assertion. The quantities raised “stay tiny,” the agency added.
Elliptic’s assertion was framed as a rebuttal to current articles and letters written by The Wall Road Journal and United States lawmakers, which the agency says had misinterpreted knowledge to make the case that cryptocurrency is extensively used to fund Hamas’ “terrorist” actions.
For example, Elliptic pointed to a “outstanding” Hamas cryptocurrency fundraising marketing campaign, operated by Gaza Now, a pro-Hamas information outlet, which has solely raised $21,000 for the reason that Hamas assault on Israel on Oct. 7.
Of the $21,000 raised, $9,000 was frozen by stablecoin issuer Tether, whereas one other $2,000 was frozen after it was despatched to a cryptocurrency trade — presumably to money out, Elliptic famous.
Setting the report straight on crypto crowdfunding by Hamas https://t.co/1tZrE1C43V
— Elliptic (@elliptic) October 25, 2023
Elliptic mentioned it reached out to WSJ to appropriate a press release that originally claimed that over $130 million in cryptocurrency was raised by Hamas and Palestinian Islamic Jihad between Aug. 2021 and June 2023. WSJ later revised the assertion to say “as a lot as $93 million” in an Oct. 10 replace.
The WSJ article had been cited in a letter written by Elizabeth Warren and over 100 different U.S. lawmakers to the White Home and U.S. Division of the Treasury on Oct. 17.
Warren and different lawmakers argued that cryptocurrency poses a “nationwide safety risk” to the U.S. and its allies and that Congress and the Biden administration should take “robust motion” to completely deal with dangers with cryptocurrencies in facilitating illicit exercise earlier than it may be used to finance one other “tragedy.”
Nonetheless, Elliptic reiterated that its knowledge was misinterpreted:
“Over the previous two weeks, politicians and journalists have portrayed public crypto fundraising as a big supply of funds for Hamas and different terrorist teams, however the knowledge merely doesn’t assist this.”
~20% of US Congress signed a letter primarily based on incorrect info. Elliptic simply corrected the info. Will @WSJ & the ~20% of Congress appropriate their statements now?@nic__carter, thanks for demanding fact right here, and holding energy accountable for misstatements of truth https://t.co/TazXQnjjgW
— Caitlin Lengthy ⚡️ (@CaitlinLong_) October 25, 2023
On Oct. 18, blockchain forensics agency Chainalysis additionally posted a weblog making an attempt to deal with supposed misconceptions circulating within the media. One explicit pockets highlighted by media reportedly obtained $82 million throughout 7 and a half months, however Chainalysis defined that of that, solely $450,000 was transferred to a recognized terror-affiliated pockets.
In the meantime, Elliptic additionally famous that in April 2023, Hamas suspended cryptocurrency fundraising performed by Bitcoin (BTC), citing a “concern concerning the security of donors and to spare them any hurt.”
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In 2021, Israel’s Nationwide Bureau for Counter Terror Financing additionally started issuing seizure orders for cryptocurrency wallets tied to Hamas and labored with exchanges to freeze accounts utilized by them.
These occasions recommend cryptocurrency isn’t a great means to facilitate terrorism fundraising, Elliptic argued:
“This illustrates the weak spot of crypto as a terrorism fundraising device. The transparency of the blockchain permits illicit funds to be traced, and in some instances linked to real-world identities.”
Cointelegraph reached out to WSJ for remark however didn’t obtain a direct response.
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