Following the recent events in Israel, there have been reports in mainstream media about the alleged connection between Bitcoin and crypto donations to Hamas, a terrorist group. It is claimed that Hamas has raised over $100 million in donations using digital assets. However, there are nuances to this situation that suggest Bitcoin and cryptocurrencies may actually hinder terrorist groups rather than aid them.
Sam Lyman, Director of Public Policy for Bitcoin mining company Riot, addressed these reports on social media platform X. He pointed out that Hamas instructed its followers to avoid donating money in Bitcoin because the transparent nature of the blockchain allows Western intelligence agencies to track their transactions. This has led to a decline in crypto donations to the group since late 2022 and early 2023.
Law enforcement agencies have been able to cooperate with crypto companies to freeze accounts associated with Hamas and their crypto holdings, potentially dealing a heavy blow to the terrorist group. Hamas itself has stated that it halted Bitcoin transactions out of concern for the safety of donors.
Economist Mohammad Abu Jayyab suggests that Hamas is more likely to use fiat currencies and traditional payment methods to fund their operations, as they may have reverted to old methods or found more advanced ones.
Overall, the situation highlights the potential for Bitcoin and crypto to aid law enforcement agencies in tracking and combating illegal activities, rather than serving as a tool for terrorists. Bitcoin is currently trading at $26,750 with a 2% loss in the last 24 hours.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | 🇮🇱 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Sam Lyman |
| Companies | Hamas, Reuters, Bitcoin mining company Riot, The Wall Street Journal, Israeli police |
| Currencies | Bitcoin |
| Securities | None |
