Introduction

Blockchain analytics provider Elliptic has responded to a misleading article published by The Wall Street Journal (WSJ) titled “Hamas Gunmen Behind Israel Attack Raises Millions in Cryptocurrencies.” The article wrongly claimed that Hamas had raised millions through cryptocurrencies.

Senator Warren’s Letter

The report from WSJ was used as the sole reference in a letter from Senator Elizabeth Warren, who called for increased regulations and measures against cryptocurrencies. Over 100 lawmakers, constituting 20% of the US Congress, signed the letter, alleging that Hamas had raised over $90 million in bitcoin and other cryptocurrencies. The letter was addressed to major national securities agencies like the Treasury Department.

Evidence and Misinterpretation

Elliptic, a Blockchain data provider, clarified that there is no evidence to support the claim that cryptocurrency fundraising by Hamas has reached such significant amounts. The data provided by Elliptic and others has been misinterpreted. We have engaged with Senator Warren’s representatives and the authors of the WSJ article to explain this.

Elliptic, a Blockchain data provider

Treasury Department’s Concern

On October 19, the US Department of the Treasury’s Financial Crimes Enforcement Network expressed concerns about the use of cryptocurrency mixers for terrorist financing. They proposed new legislation to combat the misuse of cryptocurrencies for such purposes.

Understanding Blockchain Analysis

Elliptic emphasized that blockchain provides transparency, enabling the tracing of illicit funds and their connection to real-world identities. However, it is crucial to have a comprehensive understanding of blockchain analysis and the context of the data before drawing conclusions.

Elliptic, a Blockchain data provider

Hamas and Digital Assets

In contrast to the misleading claims, Elliptic highlighted that humanitarian entities like Crypto Aid Israel have used digital assets to support families affected by conflicts. Meanwhile, Hamas has moved towards using less traceable currencies and financial systems.

Israeli Efforts to Block Funding

Crypto.news reported that the Israeli state seized cryptocurrencies with the aim of preventing funding for malicious actors in the region.

Conclusion

Elliptic’s response aims to dispel misconceptions about blockchain and privacy, providing clarity on the use of cryptocurrencies in relation to terrorism. It emphasizes the importance of accurate interpretation and understanding of blockchain analysis.