Blockchain analytics company Elliptic has responded to allegations that Hamas received significant crypto donations before its attack on Israel. In a blog post, Elliptic stated that there is “no evidence to support the assertion that Hamas has received significant volumes of crypto donations”. This contradicts an article published in The Wall Street Journal, which claimed that Hamas raised over $130 million in cryptocurrency between August 2021 and June 2022.
“There is no evidence to suggest that crypto fundraising has raised anything close to this amount,”
– Elliptic
The claims made in The Wall Street Journal article have been referenced by US lawmakers, including Senator Elizabeth Warren, who co-signed a letter with over 100 members of Congress urging crackdown on cryptocurrencies for their alleged use in funding Hamas operations. However, Elliptic argues that the data has been misinterpreted.
While Elliptic acknowledges that Hamas has dabbled in cryptocurrency fundraising, the amounts raised have been comparatively small. The transparency of blockchains allows authorities to trace and freeze crypto accounts linked to Hamas, which has limited the fundraising impact. Elliptic stated, “The unique traceability of these assets has meant that the amounts raised remain tiny compared to other funding sources.”
Pro-Hamas Crypto Fundraising Campaigns
“A full understanding of blockchain analysis and the context of any analysis is needed when using these insights to draw conclusions,”
– Elliptic
Following the Hamas attack, the prominent crypto fundraising campaign has been conducted by the pro-Hamas news organization Gaza Now. As of October 19, this campaign has raised only $21,000 worth of cryptocurrency donations, a significant portion of which has already been frozen.
It is worth noting that approximately $2,000 in crypto sent by Gaza Now to an exchange was promptly frozen, and Tether (USDT) donations totaling around $9,000 were frozen by Tether itself. These examples highlight the effectiveness of blockchain transparency in disrupting and deterring cryptocurrency flows to sanctioned groups like Hamas.
Ensuring Accurate Analysis
To prevent further misinterpretations, Elliptic has communicated with The Wall Street Journal and Senator Warren’s office to clarify the nuances of analyzing cryptocurrency wallets potentially linked to Hamas. “A full understanding of blockchain analysis and the context of any analysis is needed when using these insights to draw conclusions,” emphasized Elliptic. They aim to ensure that lawmakers and media outlets grasp the complexities involved in tracking cryptocurrency flows and avoid jumping to unsupported conclusions.
Effectiveness of Crypto Fundraising for Humanitarian Relief
Contrary to the limited success of Hamas campaigns, cryptocurrency fundraising efforts to support humanitarian relief in Israel have achieved much greater results. For example, Crypto Aid Israel has received over $185,000 worth of crypto donations as of October 19 to assist those affected by the recent attacks. This significant disparity underscores the relatively ineffective nature of cryptocurrencies as a fundraising mechanism for Hamas compared to traditional channels.
In conclusion, Elliptic reaffirms that the available data does not support claims of Hamas acquiring millions in crypto leading up to its conflict with Israel. While Hamas has experimented with cryptocurrency fundraising, these efforts have yielded minimal results and faced extensive restrictions.
