Hamas Militants Behind Israel Attack Raised Millions in Crypto

Hamas’s lightning strike on Israel last weekend has raised the question how the group financed the surprise operation. One answer: cryptocurrency. During the year leading up to the attacks, three militant groups—Hamas, Palestinian Islamic Jihad and their Lebanese ally Hezbollah—received large amounts of funds through crypto, according to a review of Israeli government seizure orders and blockchain analytics reports. Digital-currency wallets that Israeli authorities linked to the PIJ received as much as $93 million in crypto between August 2021 and June this year, analysis by leading crypto researcher Elliptic showed. Wallets connected to Hamas received about $41 million over a similar time period, according to research by another crypto analytics and software firm, Tel Aviv-based BitOK. Militants from the PIJ joined Hamas on Saturday in storming into Israel from the Gaza Strip, killing some 900 civilians and abducting at least a hundred more. At least 700 Palestinians have died since Israel retaliated with a wave of attacks on Gaza. Hamas’s armed wing, the Izz ad-Din al-Qassam Brigades, didn’t respond to a request for comment on the groups’ use of crypto. The PIJ and Hezbollah couldn’t be reached for comment. All three militant groups have been designated foreign terrorist organizations by the U.S. government and are subject to sanctions by the Treasury Department, limiting their access to the international banking system. Anyone found transacting with those entities risk criminal prosecution and being targeted with sanctions themselves.

Full research : Palestinian Islamic Jihad-linked crypto wallets received ~$93M from August 2021 to June 2023; Hamas-linked ones received ~$41M over a similar period