On July 7, Israel’s National Bureau for Counter Terror Financing(NBCTF) ordered the seizure of 84 crypto wallets that it believes are linked to militant organization Hamas. The addresses have received $7.7 million in various cryptocurrencies such as Bitcoin, Tether, and Dogecoin, with Tether constituting the largest portion of the funds at $4.1 million.

Israel to Seize 84 Crypto Wallets Associated With Hamas

Most of the wallets suspected of financing Hamas were attributed by the NBCTF to seven Palestinian nationals. However, there are many addresses on the list that could not be traced to an owner. 

As per a blog post by blockchain analytics and forensics firm Elliptic, most of the funds were transferred using Bitcoin and Tether, although Dogecoin, TRX, and Ether were also mentioned on the list, suggesting the use of a range of crypto assets by Hamas.

Many of the addresses had already been identified by Elliptic as being connected to the Al-Qassam Brigades, the military wing of Hamas. 

Elliptic also pointed out that not all addresses on the list are associated with terrorism. The firm stated:

“Some of the addresses are part of larger services and not all of these funds may be associated with terrorism. When calculating this figure we excluded funds sent to addresses known to be used by services such as exchanges to receive deposits from multiple users.” 

Hamas is a terrorist organization involved in criminal activities in the Gaza Strip. It has been categorized as a designated militant group by Israel, the US, the European Union, the UK, and other major world powers. This implies that the organization cannot access the traditional financial system to bankroll its activities in the region. And that’s why its preference for cryptocurrencies makes a lot of sense.

Hamas Relied on Cryptocurrencies in Recent Conflict

During the recent conflict between Israel and Palestine, Hamas witnessed a surge in crypto donations, especially Bitcoin. The Wall Street Journal interviewed an official from the group, who stated, “There was definitely a spike in Bitcoin donations.” He further added, “Some of the money gets used for military purposes to defend the basic rights of the Palestinians.” 

This was not the first time Hamas opted for cryptocurrencies for revenue. In 2019, the organization’s military wing launched an online campaign to gather Bitcoin donations. The Department of Justice  reported that the organization had boasted that Bitcoin  donations were “untraceable and would be used for violent causes.”