According to information provided by the forensics business Elliptic and the Tel Aviv software startup BitOK, the terrorist group Hamas and its affiliates have received millions in cryptocurrency donations.Between August 2021 and June 2023, Elliptic reported that Palestinian Islamic Jihad collected $93 million in cryptocurrency.In the same period, Hamas received nearly $41 million, according to the report.
Cryptocurrency is frequently viewed as a covert finance option for organizations and countries excluded from the U.S.-dominated international banking system.For instance, North Korean hackers have made millions of dollars in cryptocurrency by compromising multiple projects and protocols.These cash flows are challenging to track due to the privacy-preserving characteristics of many cryptocurrencies, which causes concern among government organizations.
“This is not an easy task,” Israeli Defense Minister Yoav Gallant told the WSJ.
This June, it was revealed that Izz ad-Din al-Qassam Brigades, the terrorist arm of Hamas, had received up to $100,000 in bitcoin (BTC) since the start of 2021, with a spike in donations in May when Israel and Hamas traded rocket assaults.Data from three blockchain analytics companies shows that Binance was the hub of the trades.
However, cryptocurrency is not the main source of funding for Lebanon-based Hezbollah and allied organizations like the Palestinian Islamic Jihad and Hamas.According to the U.S. government, Iran is by far the greatest financing source, contributing $100 million annually.
“Crypto is a very small part of Hamas’ fundraising strategy. It’s mostly state-sponsored,” Ari Redbord, head of legal and government affairs of blockchain intelligence firm TRM Labs, said in an interview. “There’s a focus on it because you are trying to cut off financing by any means. But it’s a relatively small part of the picture.”