‘No evidence’ Hamas is collecting millions in donations: Elliptic
Blockchain forensics firm Elliptic says there is “no evidence” that Hamas is accepting large amounts of cryptocurrency donations to fund its attacks on Israel.
“There is no evidence to support claims that Hamas has received large amounts of crypto donations,” Elliptic said in a statement on October 25. The amount raised is “small,” the organization added.
Elliptical's statement was framed as a rebuttal to recent letters written by the Wall Street Journal and US lawmakers, saying the company had misinterpreted information widely used to support Hamas' “terrorist” activities.
As an example, Elliptic points to the “popular” Hamas cryptocurrency fundraising campaign run by Gaza Now, which raised just $21,000 after the October 7 attacks on Israel.
Of the $21,000 raised, $9,000 was frozen by stablecoin issuer Tether, while another $2,000 was blocked after being sent to a cryptocurrency exchange — presumably for withdrawals — Elliptic said.
Setting the record straight with crypto crowdfunding by Hamas https://t.co/1tZrE1C43V
— Elliptic (@elliptic) October 25, 2023
Elliptic said it reached out to The Wall Street Journal to correct its statement that more than $130 million in cryptocurrency was raised by Hamas and Palestinian Islamic Jihad between August 2021 and June 2023. Up to $93 million in an October 10 update.
The Wall Street Journal article was cited in an October 17 letter by Elizabeth Warren and more than 100 other US lawmakers to the White House and the US Treasury Department.
Warren and other lawmakers have argued that cryptocurrencies pose a “national security threat” to the US and its allies, and that Congress and the Biden administration must take “strong action” to better address the risks associated with cryptocurrencies before they can monetize illegal activities. Another “sad”
However, Elliptic reiterated that the data was misinterpreted:
“Over the past two weeks, politicians and journalists have portrayed crowdfunding as a major source of funding for Hamas and other terrorist groups, but the data simply does not support this.”
~20% of US Congress signed a letter based on misinformation. Elliptic just corrected the facts. Will @WSJ and ~20% of Congress correct their statements now?@nic__carter, thanks for asking for the truth here and holding the power of misinformation accountable https://t.co/TazXQnjjgW
— Caitlin Long ⚡️ (@CaitlinLong_) October 25, 2023
On October 18, blockchain forensics firm Chainalysis also published a blog that attempts to address misconceptions that have been circulating in the media. One particular wallet that was highlighted in the media reportedly received $82 million over a seven-and-a-half-month period, but Chinalysis explained that only $450,000 of that was transferred to a known terrorist-linked wallet.
Meanwhile, Elliptic announced that in April 2023, Hamas will ban cryptocurrency fundraising through Bitcoin (BTC), citing “threats to the safety of donors and to avoid any harm.”
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In the year In 2021, Israel's National Terrorist Financing Bureau began issuing arrest warrants for cryptocurrency wallets linked to Hamas and worked with exchanges to block accounts used by them.
These events suggest that cryptocurrency is not a suitable method for facilitating terrorist financing, Elliptic argued:
“This shows the weakness of crypto as a terrorist fundraising tool. Blockchain's transparency allows for illicit funds to be found, and in some cases linked to real-world identities.
Cointelegraph reached out to The Wall Street Journal for comment but did not immediately receive a response.
Magazine: US law enforcement agencies are turning up the heat on crypto-related crimes.
