Hamas Crypto Funding Overstated: Elliptic Report Challenges Earlier Claims

Hamas Crypto Fundraising Discrepancies

Elliptic, a blockchain forensics firm, has denied recent claims that Hamas raised significant amounts of cryptocurrency to aid its activities in Israel in a recent report. Highlighting discrepancies and misinterpretations in the data, Elliptic's report challenges the accuracy of the information presented by The Wall Street Journal on Oct. 10 and various lawmakers, indicating that the actual fundraising amounts are significantly lower than previously stated.

Elliptic's investigation reveals that a major Hamas fundraising effort conducted through Gaza Now, a pro-Hamas news outlet, only managed to raise $21,000 since October 7. However, a significant portion of this amount, $11,000, has been frozen through various measures, undermining the notion of substantial fundraising efforts.

While not directly refuting The Wall Street Journal's claim of $41 million raised in crypto, Elliptic's findings call into question the accuracy of the data used to arrive at this estimate. Other analytics firms like Chainalysis also contested the validity of the claims, suggesting that the reporting might have misconstrued the flow of funds to certain crypto services as belonging solely to Hamas.

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Hamas Crypto Fundraising Timeline and Decline

Elliptic's report indicates that Hamas began soliciting Bitcoin donations as early as 2019, with contributions peaking in May 2021. However, public appeals for cryptocurrency donations ceased by April 2023, marking a notable decline in fundraising activities. The report further highlights that certain Hamas-affiliated groups have experienced frozen funds, emphasizing the ongoing efforts to curb illicit crypto transfers.