Bitcoin donations to Hamas have declined, and cryptocurrencies have been ignored by the mainstream media

After the events in Israel, the mainstream media pointed to the alleged connection between Bitcoin and cryptocurrencies and Hamas. The terrorist group has been using digital assets to raise money globally, but the situation is complicated and also reveals indirect use cases for cryptocurrencies.

**Bitcoin is not a tool, but a weapon against terrorists? **

Sam Lyman, director of public policy at bitcoin mining company Riot, spoke via social media platform X about recent reports of links between Hamas and cryptocurrency donations. As mentioned earlier, the organization allegedly raised over $100 million in donations using digital assets.

The mainstream media has been covering these donations from a digital asset perspective, enabling organizations such as Hamas to maintain a financial lifeline. A report in the Wall Street Journal said that last Sunday's infiltration of Israel by Hamas members and the deaths of hundreds of civilians was financed through cryptocurrency.

Lyman claims that the reports lack certain nuances that show that Bitcoin and cryptocurrencies are not a tool, but a potential obstacle to terrorist groups, and Hamas instructs their followers not to donate with Bitcoin.

Lyman explains:

"Why? Because the transparency of blockchain allows Western intelligence agencies to track their every transaction like a hunting dog. Hence a sudden drop on the chart. There's a reason money laundering through Bitcoin is called "classic stupid crime." It keeps everyone involved in the spotlight. Keep this in mind as the usual suspects will ramp up their anti-crypto rhetoric in the coming weeks. ”

As you can see in the chart below, cryptocurrency donations from the terrorist group have been declining since late 2022 and early 2023. Bitcoin is the main cryptocurrency used for this purpose, and law enforcement agencies can easily track them down.

The amount of Bitcoin donated to Hamas has been declining since 2022. Source: Elliptic

Hamas prefers fiat money over cryptocurrencies

The recent attacks on Israel have only increased cooperation between local law enforcement agencies and cryptocurrency companies. These entities allow Israeli police to freeze accounts linked to Hamas and their cryptocurrencies, which could deal a heavy blow to the terrorist group.

In a separate report released by Reuters, Hamas halted bitcoin trading, saying the terrorist group said: "This is out of concern for the safety of donors so that they do not suffer any harm." The statement highlights the potential of bitcoin and cryptocurrencies to help law enforcement agencies and curb similar illegal activities.

In addition, economist Mohammad Abu Jayyab told Reuters that terrorist groups may be more inclined to fund their operations using fiat currencies and traditional payment methods. "They may also prefer to go back to the old traditional methods, or they have come up with more advanced methods," the expert said. ”