No, Cryptocurrency Isn't Helping Hamas Raise Millions

 

Elliptic is the latest on-chain research firm to dispel claims that cryptocurrency is a major source of funding for Hamas, the Palestinian terrorist organization currently at war with Israel.

In an Oct. 25 report, Elliptic asserts “there is no evidence to support the assertion that Hamas has received significant volumes of crypto donations,” contradicting recent statements from Democratic senator, Elizabeth Warren, and reporting from the Wall Street Journal (WSJ).

Earlier this month, WSJ claimed that Hamas had raised around $134M worth of cryptocurrency since 2021. Warren cited the report last week in calling for the Biden administration to curb the use of crypto by Hamas and other militant groups, and to “address the serious national security threats posed by crypto’s use to finance terrorism.”

But on-chain researchers have not been able to support the assertions made by Warren and the WSJ; Chainalysis, TRM Labs, and now Elliptic have all found that digital assets have not been a major factor in helping to fund Hamas.

"Public cryptocurrency fundraising has been portrayed by politicians and media as a major source of funding for Hamas and other terrorist organizations over the past two weeks, but the data simply does not support this," Elliptic stated. "In comparison to other financial sources, no terrorist organization's public cryptocurrency fundraising effort has gotten a sizable amount of donations. When applying these insights to make conclusions, one must have a thorough understanding of blockchain analysis as well as the context of any investigation.

Senator Warren's office and the Wall Street Journal have been contacted by the company "to correct misinterpretations."