Elliptic pushed again towards a Wall Avenue Journal report from earlier this month alleging that Hamas used crypto as a technique to fund its assaults on Israel.

The report from the Journal was additionally cited by Democratic lawmakers asking the Biden administration about the usage of crypto by terrorist teams.

Blockworks beforehand reported that, primarily based on skilled interviews, the probability of crypto getting used as a funding software was slim because of the nature of a public blockchain. Regulation enforcement, Elliptic wrote in its earlier report, are capable of “efficiently freeze crypto belongings held by terrorist teams.”

The Journal’s report claimed that Hamas was capable of increase “hundreds of thousands” in crypto.

“Nonetheless, there isn’t a proof to recommend that crypto fundraising has raised something near this quantity, and information supplied by Elliptic and others has been misinterpreted,” Elliptic mentioned. “No public crypto fundraising marketing campaign by a terrorist group has acquired vital ranges of donations, relative to different funding sources.”

Learn extra: Warren, Democrat lawmakers demand plan on crypto terror financing prevention

“Now we have spoken to representatives of the lead signatory, Senator Warren, in addition to the authors of the Wall Avenue Journal article, to make clear this,” the put up continued.

Elliptic additional tracked among the funds, noting that “solely $21,000 in cryptocurrency has been donated since Oct. 7, and because of the efforts of crypto companies and researchers, a lot of this has been frozen — stopping Gaza Now from having the ability to use these funds.”

Chainalysis pushed for a extra nuanced method when trying into how terrorist organizations doubtlessly use crypto, after Warren and 100 different Democrats penned their letter. 

“To the untrained eye, it would seem that $82 [million] price of cryptocurrency was raised for terror financing,” Chainalysis wrote. 

“However it’s more likely {that a} small portion of those funds had been meant for terrorist exercise and a majority of the funds processed via the suspected service supplier had been unrelated.”
Crypto has, nonetheless, been used as a technique to fundraise for humanitarian causes.

Crypto Help Israel raised over $185,000 in crypto and the United Nations Reduction and Works Company for Palestine Refugees (UNRWA) enabled crypto donations a number of years in the past.

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