Elliptic, a blockchain analytics firm, has debunked the claims that Hamas raised millions of dollars via crypto to fund its attacks on Israel. Elliptic said that crypto donations to Hamas are insignificant compared to other funding sources.
Elliptic’s report was prompted by an article published by the Wall Street Journal on Oct. 10, which alleged that Hamas militants raised millions in crypto between August 2021 and June 2023.
The article cited Elliptic’s data as a source but misinterpreted and exaggerated the figures.
The article initially claimed that Hamas received $130 million worth of crypto donations but later corrected the report to say the amount raised was “as much as $93 million”.
However, Elliptic said this amount was still inaccurate and misleading, as it included transactions unrelated to Hamas or terrorism financing.
Elliptic said that it reached out to the Wall Street Journal to correct the misinterpretations and that it also contacted Senator Elizabeth Warren, who cited the article in a letter to the White House on Oct. 17.
The letter urged the Biden administration to take action against the use of crypto for terrorism financing.
“Over the past two weeks, politicians and journalists have portrayed public crypto fundraising as a significant source of funds for Hamas and other terrorist groups, but the data simply does not support this. The amounts raised remain tiny compared to other funding sources.”
EllipticThe reality of crypto donations to Hamas
While Elliptic acknowledged that Hamas has received some crypto donations, it said that the amount was far from being significant or substantial.
Elliptic referred to a popular Hamas crypto fundraising campaign by Gaza Now, which has only raised $21,000 since Oct. 7.
About $9,000 of this was frozen by Tether, a stablecoin issuer, while another $2,000 was frozen after being sent to a cryptocurrency exchange.
Elliptic also compared the crypto donations to Hamas with those received by Israel through Crypto Aid Israel, a platform that supports people affected by the attacks.
It said Israel has received over $185,000 worth of crypto donations through Crypto Aid Israel.
Elliptic explained that crypto donations are not an ideal source of funding for terrorist groups, as they are traceable and vulnerable to freezing or confiscation.
“Blockchain technology makes crypto transactions transparent and traceable, making them less suitable for illicit activities than cash or other forms of money transfer. Crypto donations are also subject to freezing or seizure by authorities or service providers, reducing their utility for terrorist groups.”
The need for accurate Journalism
Elliptic concluded its report by calling for more balanced and accurate reporting on the use of crypto for terrorism financing.
The analytics firm highlighted that sensationalizing and exaggerating the issue could have negative consequences for the crypto industry and its users.
“We believe that it is important to provide factual and objective information on the use of crypto for illicit purposes without resorting to sensationalism or speculation. Misrepresenting the data can create unwarranted fear and distrust towards crypto technology and its users and undermine its potential for social good.”
Elliptic also said it is committed to working with regulators, law enforcement agencies, and industry partners to combat the misuse of crypto for terrorism financing and other crimes.
