Attacks launched by Hamas against Israel include rockets, drones, Needless to say, paragliding Using cell phone cameras and internet connections, they broadcast their crimes to the world. Where did all these funds come from?
Partly cryptocurrencies. Decentralized finance has always been touted as a way around the difficulties of a regulated global financial system, and cryptocurrencies have long been used to fuel black markets. But its role as a source of funding for terrorist organizations doesn’t always feature in his Web3 proposal materials.
In August 2020, the U.S. government seized millions of dollars From terrorist groups that use cryptocurrencies to raise funds. However, Elliptic, a company that helps crypto businesses comply with financial regulations, said: wall street journal The extremist group “Palestinian Islamic Jihad” captured hostages in the recent attack on Israel. Hamas itself amassed an additional $93 million worth of cryptocurrencies between June 2021 and August 2023. Hamas itself collected about $41 million in digital payments.
It is not clear how the funds were used, but in 2022 U.S. authorities sanctioned Hamas’ investment office. they said He had assets of $500 million. That provides some background —United Nations estimates Cryptocurrencies account for 20% of global terrorist financing.
How terrorist groups use cryptocurrencies
Affiliated organizations such as Hamas’s military wing, the al-Qassam Brigades, have publicly solicited Bitcoin donations since at least 2019. However, these groups are tied to a variety of currencies, including Dogecoin, a cryptocurrency often touted by Elon Musk, and stablecoins such as Tether and USDC. Fixed to US dollar. In an August 2023 report, Elliptic even said that wallets it was monitoring exhibited behavior consistent with terrorist groups investing. defi protocol And collect profits using Solana, the most famous cryptocurrency backed by FTX. Sam Bankman Freed.
These organizations may find it difficult to purchase traditional financial assets from the open market, but can take advantage of smart contracts without worrying about customer awareness requirements. According to Elliptic, some groups even engage in crypto mining, which allows them to profit from the basic upkeep of crypto networks.
Israeli and U.S. officials have asked crypto exchanges like Binance for help in blocking access from users associated with terrorist organizations. An important venue for this effort is the Financial Action Task Force (FATF). Regulators around the world are developing standards and best practices to combat money laundering. The FATF’s “grey list” still includes dozens of countries that do not meet these standards, including Jordan, Syria and the United Arab Emirates.
Shlomit Wagman, former director of Israel’s Office for the Prohibition of Money Laundering and Terrorist Financing, said: I wrote it last year Companies developing cryptographic technology should pay more attention to techniques that prevent money laundering and terrorist financing.
“Unless the risks of cryptocurrency abuse are adequately mitigated, the development of the industry will be undermined,” Wagman warned. “Regulators could even outlaw cryptocurrencies, as China is trying to do.”
