Drop in Bitcoin donations to Hamas, what the mainstream media overlooked about cryptocurrencies

Following the events in Israel, mainstream media outlets pointed out the alleged connection between bitcoin and cryptocurrencies with Hamas. The terrorist group has been using digital assets to raise money globally, but the situation is complex and sheds light on cases of indirect use of cryptocurrencies.

Is bitcoin not a tool, but a weapon against terrorists?

Via the social media platform managed recent reports about the connection between Hamas and crypto donations. As mentioned, the group reportedly raised over $100 million in donations using digital assets.

Major media outlets have been reporting on these donations from the perspective of digital assets, allowing groups like Hamas to maintain a financial lifeline. A Wall Street Journal report crypto-b9134b7a?mod=finance_lead_story” target=”_blank” rel=”noopener nofollow”>claims that the events of last Sunday, when members of Hamas infiltrated Israel, causing the death of hundreds of civilians, were financed with cryptocurrencies.

Lyman claims that the reports lack certain nuances that point to bitcoin and cryptocurrencies not as a tool but as a potential obstacle for terrorist groups. Hamas instructed his followers to refrain from donating money in bitcoin. Lyman explained:

Because? Because the transparent nature of the blockchain made Western intelligence follow every transaction like bloodhounds. Hence the sudden drop in the graph. There’s a reason why money laundering through bitcoin has been called a “classically dumb crime.” Highlight everyone involved. Remember this, as the usual suspects will be stepping up their anti-cryptocurrency rhetoric in the coming weeks.

As seen in the chart below, the terrorist group has been experiencing a decline in its cryptocurrency donations since late 2022 and early 2023. bitcoin was the main cryptocurrency used for this target, and law enforcement agencies It was easy to track them.

The number of bitcoin donations to Hamas has been decreasing since 2022. Source: Elliptic

Hamas prefers Fiat to cryptocurrencies

The most recent attack on Israel has only increased cooperation between local law enforcement agencies and crypto companies. These crypto/” target=”_blank” rel=”noopener nofollow”>entities allowed to the Israeli police freeze those accounts associated with Hamas and its cryptocurrencies, which could deal a heavy blow to the terrorist group.

In a separate Reuters report, published as Hamas halted its bitcoin transactions, the terrorist group stated: “This arises out of concern for the safety of donors and to prevent them from any harm.” The statement highlights the potential of bitcoin and cryptocurrencies to assist law enforcement agencies and quell similar illegal activities.

Additionally, economist Mohammad Abu Jayyab told Reuters that the terrorist group is likely more inclined to use fiat currencies and traditional payment methods to finance its operations. The expert said: “They may also have preferred to return to the old traditional methods, or perhaps they discovered more advanced ones.”

At the time of writing, bitcoin is trading at $26,750, with a loss of 2% in the last 24 hours.