Elliptic analysts reported that the use of cryptocurrencies for terrorist financing is extremely small - Hamas has received no more than $21,000 since October 7, and most of the cryptocurrencies have been blocked.
We will remind that on October 7 there was an attack by Hamas militants on Israel. Against this backdrop, fears have arisen again that cryptocurrencies are being used to finance such terrorist operations. However, as of October 7, only $21,000 has arrived in the Hamas wallet, and a significant portion of the funds have been blocked, Elliptic analysts reported.
Elliptic notes that Hamas began receiving cryptocurrency donations as early as 2019, and April 2021 saw the maximum inflow of funds. However, in April 2023, the movement stopped all public cryptocurrency activity because it was "concerned about the safety of sponsors". The militants emphasized that they "constantly see actions against those who support the resistance with the help of cryptocurrency."
"This shows the unsustainability of cryptocurrencies as a terrorist financing tool. The transparency of the blockchain makes it possible to track illegal funds and, most often, to identify the identity of the owners of the wallets," Elliptic experts noted.
So, after the attack began on October 7, the organization Gaza Now announced a large-scale fundraising campaign in cryptocurrencies. Since then, the organizations have transferred $21,000. However, of these funds, $9,000 was blocked by stablecoin operator Tether, and another $2,000 was blocked by an unnamed exchange during a withdrawal attempt.
At the same time, the use of cryptocurrencies for humanitarian purposes is much higher. For example, the Crypto Aid Israel organization received $185,000 in various cryptocurrencies from October 7 to 19.
Various officials often talk about the use of cryptocurrency to finance terrorism. However, no analytical firm has yet confirmed the scale of this phenomenon.
