Hamas’ Crypto Funding: A Small Yet Significant Contributor to Hamas’ Violence
Hamas, the militant Islamist group controlling Gaza, launched a massive attack on Israel. The assault resulted in the tragic loss of over 1,500 civilian lives and the taking of numerous hostages. Notably, Hamas has used crypto donations to fund its military operations partially. The use of cryptocurrencies makes it more challenging to trace and block transactions compared to traditional forms of money transfers.
Hamas Receives $7.3 Million in Cryptocurrency
According to a report by blockchain analytics firm Elliptic, Hamas’ military wing received more than $7.3 million in various cryptocurrencies, including $40,000 in Dogecoin, a meme-inspired digital coin famously promoted by Tesla CEO Elon Musk.
Although this amount may seem relatively small compared to the annual $100 million provided by Iran to Hamas and other Palestinian militant groups, or the $360 million pledged by Qatar for Gaza’s aid, or even the estimated $300 million collected by Hamas through taxes and extortion within their controlled territory—it cannot be underestimated.
Read Also: Israel Cracks Down on Crypto Links to Hamas Amid Rising Conflict
Even smaller sums can have a significant impact in contexts of low-budget and low-tech attacks. An example that illustrates this is the September 11th, 2001 attacks carried out by Al-Qaeda. It was reported that these attacks only cost them approximately $500,000 but caused a staggering $3.3 trillion worth of damages to the United States.
Challenges of Crypto in Counter-Terrorism
Cryptocurrency poses a challenge for counter-terrorism efforts. It enables fast and anonymous cross-border fund transfers, leaving behind only a digital trail that can be difficult to track. Additionally, it plays a role in the broader landscape of financing terrorism, with social media platforms, remittance services, and prepaid cards often involved.
Read Also: US Lawmakers Seek to Halt Hamas Crypto Amid Gaza Tensions
During periods of conflict, terrorist groups tend to ramp up their fundraising activities. Although Hamas temporarily halted Bitcoin donations in April 2023, this suspension may not last long. Notably, Australia’s financial intelligence agency recently issued a warning regarding crypto donation solicitations for Hamas on Telegram, a messaging app.
Global Crackdown on Crypto Terror Funding
Governments worldwide are taking decisive measures to tackle the threat of terrorism funding through cryptocurrencies. Just recently, Israel took action by seizing multiple crypto accounts associated with Hamas and even freezing a Barclays bank account believed to have ties to the group.
Following suit, the US Treasury announced sanctions on various entities and individuals connected to Hamas, including a Gaza-based crypto company known as “Buy Cash” that facilitated transfers for Hamas affiliates.
The Treasury’s statement highlighted not only the fundraising aspect of cryptocurrencies but also underscored how Buy Cash exploited them for financial transactions in support of Hamas.
Read Also: Israel Cracks Down on Crypto Links to Hamas Amid Rising Conflict
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
