Elliptic Debunks WSJ’s Allegations of Significant Crypto Donations to Hamas

In the fast-evolving landscape of cryptocurrency, recent allegations against Hamas have stirred controversy. Blockchain forensic firm Elliptic has come forward, debunking claims that the organization has been receiving substantial cryptocurrency donations to fuel its attacks against Israel. “There is no evidence to support the assertion that Hamas has received significant volumes of crypto donations,” stated Elliptic in a clarifying announcement made on October 25. The firm emphasized that the amounts raised remain minuscule.

This statement serves as a counter-response to previous contentions made in articles and letters by The Wall Street Journal and U.S. lawmakers. Elliptic accused these sources of misinterpreting data, painting a picture of cryptocurrency as a major funding source for Hamas’ alleged terrorist activities. The company cited a specific case of a Gaza Now-run campaign, affiliated with Hamas, which only managed to raise $21,000 since October 7.

In further detailing the fund’s trajectory, Elliptic highlighted that a significant portion of the raised amount was frozen. Stablecoin issuer Tether halted $9,000, and an additional $2,000 was frozen when attempted to be cashed out via a cryptocurrency exchange.

Elliptic took proactive steps, reaching out to The Wall Street Journal to correct an initial claim that suggested a staggering $130 million had been raised by Hamas and Palestinian Islamic Jihad from August 2021 to June 2023. The Wall Street Journal adjusted this figure to “as much as $93 million” in an update on October 10.

These figures played a central role in a letter dated October 17, authored by Senator Elizabeth Warren and backed by over 100 other U.S. lawmakers. The letter, addressed to the White House and the U.S. Department of the Treasury, raised alarms about cryptocurrency posing a “national security threat,” urging for immediate and robust action. Elliptic, however, stood its ground, reiterating the misinterpretation of their data.

Chainalysis, another blockchain forensics firm, joined the conversation on October 18, attempting to dispel prevalent media misconceptions. The firm pointed out a specific wallet in question, highlighting that out of the reported $82 million received over seven and a half months, a mere $450,000 could be traced back to a wallet affiliated with terrorism.

Elliptic also shared an intriguing development from April 2023, where Hamas reportedly put a halt to their Bitcoin fundraising endeavors due to donor safety concerns. This, coupled with the 2021 initiatives by Israel’s National Bureau for Counter Terror Financing to seize and freeze cryptocurrency wallets linked to Hamas, underscores the challenging nature of using crypto for terrorism fundraising. Blockchain’s inherent transparency enables the tracing of illicit funds and, in some cases, the identification of real-world identities, showcasing crypto’s limitations as a tool for such activities.

While the discourse around cryptocurrency’s role in terrorism financing continues, it is important to note that crypto has also facilitated fundraising for humanitarian causes. Crypto Aid Israel has successfully raised over $185,000 in crypto, and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) has been accepting crypto donations for several years.