Anti-terror experts have stumbled onto Bitcoin and other crypto as another source of revenue for Hamas. Online donors from all around the globe have been offering monetary support to the group through the use of online money transfers, such as Bitcoin.
The US and Israel have seized blockchain accounts linked to the organization. Long before this was unearthed, the US Department of Justice had been carrying out an inquiry into how Hamas allegedly utilizes the services of money launderers in the cryptocurrency trade.
The US government has not released any real info on the allegations. However, in the documents that are available to the public, it becomes clear that the US government has in the past seized crypto accounts with links to Jihadists.
Case: The Man From New Jersey
In 2019, the US authorities filed charges against a man from New Jersey. According to the charges, the man posted on Instagram how he had allegedly donated $100 to the organization. The man was also charged with donating $20 in Bitcoin to the Islamist group. He later pled guilty to the charges.
Israel has also nabbed blockchain addresses that the government alleges have links to Hamas and other Palestinian resistance groups. The accounts are said to be holding tens of millions of dollars in crypto.
The armed militant group and other fundamental Islamist groups also brazenly use Facebook and X (formerly known as Twitter) to solicit for funding.
According to the US Department of Homeland Security, the groups post the addresses for their bitcoin wallets and offer guidelines on how to donate money.
Hamas Tried To But Didn’t Stop Using Crypto
In April, possibly in response to governments tightening their vigilance on online money transactions, The terror group made an announcement that they would stop dealing in bitcoin, in an effort to protect the identities of their donors.
Apparently, however, the Palestinian group has not fully divested from bitcoin.
Last week, the Israeli authorities revealed that they had put on ice additional blockchain wallets that the group has been used to fund its latest conflict with the Jewish state.
According to reports by the Wall Street Journal, the terror organization received approximately $41 million in virtual currency between 2020 and 2023.
Islamic Jihad, another group on the terror watchlist, held an estimated $93 million in the same timeframe.
Cryptocurrency Companies Warned About Hamas And Crypto
Wally Adeyemo, the United States Deputy Secretary of the Treasury, has warned blockchain firms about allowing their trading to be used as a conduit for terror funding.
The US government has warned that,
“If they (crypto platforms) do not act to prevent illicit financial flows, the United States and our partners will.”
Some experts are however, refuting assertions that terrorist group is in the virtual currency game.
Elliptic, a firm that specializes in analyzing crimes in the virtual money industry, recently released a statement saying there is no evidence supporting the view that the terrorists and other groups are employing digital currency as a source of funding.
According to the firm, “The transparency of the blockchain allows funds to be traced,” and in some cases, the transactions can be traced to the real identity behind them.
However, the allegations and action by the United States and Israel will surely shine the spotlight on the industry.
With the death toll continuing to grow as Israel bombs Gaza in response to the recent attack by Hamas, Bitcoin and other blockchain platforms will be under increased scrutiny.
