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- 1 A recent report highlights the role of crypto funding to terrorist groups in the ongoing Israel-Hamas conflict.
- 2 A report by TRM Labs stated that Hamas is using crypto assets to fund continued disputes with Israel.
Cryptocurrencies undoubtedly changed the parameters of the financial sector on many fronts. The digital form of ‘money’ gives complexity to almost every other fiat currency across the world. So much so that crypto assets soon found their place for donation and aid purposes. However, the assets also gave the identity of an easy target for people with illicit mindsets and terrorists. A recent report highlights the role of crypto funding to terrorist groups in the ongoing Israel-Hamas conflict.
TRM Labs released a report that sheds light on how Hamas is using crypto assets to fund continued disputes with Israel. The tension between the Jewish country and the alleged terrorist group of the Gaza Strip does not rest usually. But they took a decisive turn after the surprise large-scale attack on the country on October 7, 2023.
An attack so massive that Israel might not have seen it in the last fifty years since the war in 1973 against Arab countries. Hamas launched over 5,000 missiles, infiltrated through land, water, and air, and killed and abducted people from Israel which also includes citizens of the US, France, Germany, etc.
Though retaliation from Israel took no longer and it soon started encountering the threat on their soil, the damage has been done and the struggle still continues. Amidst all the situation, the question arises of how a terrorist group like Hamas operating from a poor region, Gaza, managed to carry out such a massive attack. It’s not clear what other income source for the group could be, but it’s clear that crypto is one of them, and maybe even a prominent one.
TRM Labs reported that since the recent conflict started, several fundraising initiatives started taking place in Gaza. The report mentions GazaNow, a group based and operates from the strip and is known to actively support Hamas, which started accumulating crypto donations. It issued several crypto wallet addresses that were first active in 2021. The wallet allured $800K in overall funds since then. For the recent attacks, it gathered $5,000 until it stopped operating.
Within two days of its reactivation, GazaNow suspended its public fundraising and shifted to taking direct donations through personal messaging from supporters. The effort is likely to come as a safety measure in the wake of security agencies’ tightening scrutiny.
Hamas gave the recent operation title “Tofan al-Aqsa”, or al-Aqsa Storm. A namesake fundraising campaign also pulled off via Twitter. However, it was not successful in raising any notable funds.
The Israel National Bureau for Counter-Terror Financing (NBCTF) has been actively targeting the use of cryptocurrency by groups like Hamas, seizing numerous cryptocurrency addresses affiliated with them, primarily involving Tether on the Tron network.
It reflects an evolution in terrorist financing, with these groups using multiple chains and currencies to evade sanctions and law enforcement. Hamas and other groups have shifted to embedding payment processors in their websites for donations due to increased scrutiny.
Additionally, in April 2023, the al-Qassam Brigades stopped receiving Bitcoin donations due to security concerns. Israel has also seized addresses related to Palestinian Islamic Jihad, Hezbollah, and Iran’s Islamic Revolutionary Guard Corps, marking their largest cryptocurrency seizure targeting these groups. The key address was linked to individuals with ties to Hezbollah and IRGC.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
