Cryptocurrency research institute, digital currency wallet analysis
Three armed groups, including Hamas, refuse to announce their position
Circumstances were discovered that Hamas, the Palestinian armed political faction that carried out a surprise attack on Israel, had raised tens of millions of dollars worth of funds through cryptocurrency.
According to the Wall Street Journal (WSJ) on the 10th (local time), after reviewing the Israeli government’s seizure order and blockchain analysis report, three armed groups, including Hamas, Palestinian Islamic Jihad (PIJ), and Hezbollah, have been using cryptocurrency over the past year. It appears that a large amount of funding has been raised.
Elliptic, a cryptocurrency research institute, analyzed that a digital currency wallet that Israeli authorities believe is linked to PIJ received $93 million (about 124.5 billion won) in cryptocurrency from August 2021 to last June.
BitOK, a virtual currency analysis company headquartered in Tel Aviv, also determined that about $41 million (approximately 54.8 billion won) flowed into wallets linked to Hamas during the same period.
It has not been confirmed whether the cryptocurrency they received was directly used to fund this Israeli attack. The amount of cryptocurrency confiscated from the wallet by Israeli authorities was also unknown.
Analysis companies believe that it is highly likely that the amount confirmed this time is only a portion of the total funds of the three organizations.
PIJ militants are a group known to have attacked Israel from the Gaza Strip together with Hamas on the 7th, the Jewish Sabbath, killing over 900 civilians and kidnapping at least 100 people.
All three armed groups are designated as foreign terrorist organizations by the U.S. and are subject to Treasury sanctions, and their access to international banking networks is restricted. If you are found to be doing business with this organization, you may be subject to criminal prosecution and sanctions.
Western terrorism analysts and former government officials interpret this cryptocurrency transaction as showing efforts by the United States and Israel to block the overseas financing of three groups.
Tokens can be transferred immediately through a digital wallet typically held on a cryptocurrency exchange, bypassing banks. The U.S. Treasury Department pointed out in a report last year that terrorist groups exploit this loophole, and that IS and Al Qaeda also received donations in cryptocurrency.
“Using cryptocurrency is much easier than smuggling cash across the Egyptian border,” said Matthew Price, a former IRS investigator who now heads Elliptic.
Neither the Hamas militant group Izz ad-Din al-Qassam Brigades, PIJ, or Hezbollah responded to requests for comment on cryptocurrency.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.