Militant Groups Raised $93 Million in Crypto Before Assault on Israel

According to Wall Street Journal, Hamas and its allies received some $93 million worth of cryptocurrency and digital assets in the lengthy build up to its direct assault on Israeli territories.

WSJ’s report cites evidence provided by leading cryptocurrency and blockchain analytics firm, Elliptic, and claims that Hamas, alongside its allies in the Palestinian Islamic Jihad and the Lebanese Hezbollah, were the recipients of a whopping $93 million worth of cryptocurrency, between the periods of August 2021 and June 2023.

Hamas Reliance on Crypto Decreases

According to reports by Business Today, Hamas originally endorsed cryptocurrency as a means of fundraising. However, in April 2023, the group claimed it would no longer accept Bitcoin-based contributions, owing to the “hostile” treatment of some of its donors.

The perceived involvement of cryptocurrency in the financing of terrorist groups may serve to decrease the credibility and reputation of the digital asset sector on the world stage. Indeed, the alleged involvement of blockchain technology during the ongoing war between Russia and Ukraine may further add to this.

However, in such times, it is important to remember that the impartial nature of blockchain and digital assets is also reflected in the more than $200 million reportedly raised in cryptocurrency to provide aid to Ukraine. Blockchain’s nature as a decentralized tool can mean it is available to those with malicious, as well as benign, intentions.