Giovanni Russo Blockchain analytics enterprise Elliptic has released a statement discrediting the notion that Hamas, the militant organization engaged in hostilities with Israel, has secured significant cryptocurrency donations. The firm underscores that the cryptocurrency data it has supplied has been misconstrued. Elliptic goes on to note that several cryptocurrency accounts linked to Hamas have been either seized or frozen, arguing that these developments showcase the limitations of cryptocurrency as a reliable channel for fundraising for illicit activities, due to the inherent transparency of blockchain technology.
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Meager Crypto Fundraising by Hamas Relative to Other Revenue Streams
In a blog post published this past Wednesday, Elliptic sought to rectify widespread misconceptions about Hamas’s crypto fundraising activities, an issue that gained attention following various media reports. Among these was an article from The Wall Street Journal, which claimed that Hamas had accumulated significant sums of cryptocurrency, thus prompting calls for regulatory action from high-profile figures, including Senator Elizabeth Warren and an assembly of over 100 U.S. lawmakers.
Elliptic clarified:
Claims that Hamas has garnered considerable donations in cryptocurrency are not substantiated by evidence.
Senator Elizabeth Warren and other U.S. lawmakers had issued a joint letter to the White House and the U.S. Department of the Treasury, citing cryptocurrency as a tool employed by Hamas for subverting U.S. sanctions and funding their military activities. The letter asserted that between August 2021 and June of the current year, Hamas and Palestinian Islamic Jihad (PIJ) had collectively raised over $130 million in cryptocurrency.
Elliptic, however, refuted these figures, stating, “The available evidence does not indicate that cryptocurrency fundraising for these groups has come anywhere close to the sums mentioned, and the data from Elliptic and other sources has been wrongly interpreted.”
To further resolve the issue, Elliptic revealed that it is in talks with The Wall Street Journal to correct the misleading information regarding the level of crypto funds raised by Hamas and is also engaging with Senator Warren’s office to ensure that all concerned parties possess an accurate understanding of the intricate aspects of wallet analysis in the blockchain. Elliptic noted:
Our discussions have encompassed dialogue with Senator Warren’s office and the authors of the Wall Street Journal piece, aiming to offer clear elucidation.
While acknowledging that Hamas has indeed started to dabble in cryptocurrency fundraising through public platforms and social media, Elliptic pointed out that the blockchain’s unique traceability renders the amounts garnered minuscule when compared to other funding sources.
The analytics company also accentuated that a host of cryptocurrency wallets tied to Hamas have been confiscated. It added that centralized cryptocurrency exchanges are actively cooperating with legal authorities to halt accounts involved in unlawful transactions. Elliptic elaborated:
The inherent transparency of blockchain technology facilitates the tracing of illicit funds and, in certain instances, their linkage to real-world identities.
In addition, Elliptic provided specifics about a crypto fundraising campaign operated by Gaza Now, a pro-Hamas news agency. According to the firm, only $21,000 in cryptocurrency has been raised since the Hamas attacks on October 7th, and a significant portion of this amount has been frozen. Approximately $2,000 in crypto was sent to an exchange on October 9th and was promptly frozen. Moreover, around $9,000 in USDT donations were also halted by Tether.
Contrarily, Elliptic observed a surge in crypto donations for humanitarian efforts in Israel, highlighting that Crypto Aid Israel had amassed over $185,000 in cryptocurrency by October 19th to aid those affected by the conflicts.
What are your thoughts on Elliptic’s clarification regarding the extent of cryptocurrency funding received by Hamas? Kindly share your views in the comments section below.
Frequently Asked Questions (FAQs) about Elliptic Clarifies Hamas Crypto Funding
What is the main assertion made by blockchain analytics firm Elliptic regarding Hamas and cryptocurrency donations?
Elliptic refutes the claim that Hamas has received significant volumes of cryptocurrency donations. The firm emphasizes that the data it has provided has been misinterpreted by various parties, including media outlets and lawmakers.
What prompted Elliptic to clarify its position on Hamas’s cryptocurrency fundraising?
Elliptic released a blog post in response to numerous media reports that claimed Hamas had raised significant sums in cryptocurrency. Among these reports was an article in The Wall Street Journal, which was subsequently cited by Senator Elizabeth Warren and over 100 other U.S. lawmakers in a letter to the White House and the U.S. Department of the Treasury.
Did Elliptic make any contact with Senator Elizabeth Warren or The Wall Street Journal?
Yes, Elliptic revealed that it has engaged in discussions with both Senator Elizabeth Warren’s office and The Wall Street Journal. The aim is to correct misinterpretations and to ensure that all concerned parties have an accurate understanding of the complexities involved in analyzing cryptocurrency wallets.
What does Elliptic state about the efficiency of cryptocurrency as a fundraising tool for illicit activities?
Elliptic argues that cryptocurrency is a relatively weak tool for illicit fundraising activities such as terrorism. This is primarily because the transparency of blockchain technology allows for illicit funds to be traced, and in some cases linked to real-world identities.
Has Elliptic provided specific data regarding the extent of cryptocurrency funding received by Hamas?
Yes, Elliptic has detailed that a pro-Hamas news organization, Gaza Now, raised only $21,000 in cryptocurrency donations since the Hamas attacks on October 7th. Much of this amount has already been frozen. This supports Elliptic’s assertion that the amounts raised via cryptocurrency are minuscule when compared to other funding sources.
How does crypto fundraising for humanitarian efforts in Israel compare to that for Hamas?
According to Elliptic, crypto fundraising for humanitarian causes in Israel has been far more successful. The firm pointed out that by October 19th, Crypto Aid Israel had received over $185,000 in crypto donations to aid those impacted by the conflicts.
What action have centralized crypto exchanges taken regarding accounts linked to Hamas?
Elliptic highlighted that centralized cryptocurrency exchanges are actively cooperating with legal authorities to freeze accounts that are connected to illicit activities, including those linked to Hamas.
More about Elliptic Clarifies Hamas Crypto Funding
- Elliptic’s Official Blog Post
- The Wall Street Journal Article on Hamas and Crypto
- Senator Elizabeth Warren’s Letter to the White House
- U.S. Department of the Treasury on Cryptocurrency Regulations
- Blockchain Technology and Transparency
- Humanitarian Crypto Fundraising in Israel
- Overview of Crypto Exchanges and Regulatory Compliance
7 comments
Wait, so you’re telling me that even Senator Warren got it wrong? thats a surprise, but good to know the facts.
So basically, crypto isn’t the big bad wolf when it comes to terrorism funding? That’s a relief but still, more regulations might not be a bad idea.
Good on Elliptic for setting the record straight. Misinformation can be really damaging, specially in sensitive topics like terrorism and finance.
Elliptic’s doing a good job clarifying things. It’s easy for info to get twisted and ppl need to know whats what.
Very comprehensive article. It touches on multiple aspects from the technicalities of blockchain analytics to the political implications.
Interesting to see that humanitarian causes in Israel are actually doing well in crypto fundraising. Puts things in perspective, doesn’t it.
Wow, this really clears up some misunderstandings. always thought Hamas was gettin a lot from crypto, but turns out its not as big a deal as media makes it look like.