Crypto's Role in the Israel-Hamas Conflict
Adekunle Joshua
A bipartisan group of 29 Senators and 76 Congressmen, led by Senators Elizabeth Warren and Sherrod Brown, sent a letter to President Biden's advisors demanding answers on the role of cryptocurrency in recent attacks on Israel
The letter follows claims that cryptocurrency played a significant role in recent Hamas attacks on Israel, which resulted in casualties. Hamas has been using crypto for fundraising since 2019, but analysts dispute its significance in the crisis
While some argue that crypto is a minor part of Hamas's fundraising, others emphasize the transparency of blockchain technology, making it easier for authorities to trace crypto transactions, including those associated with terrorist groups
Former CIA Director Michael Morell praised Bitcoin for its potential in surveillance and tracking
Traditional methods for transferring funds to terrorist groups, such as hawalas and shell companies, lack the same transparency
Law enforcement agencies worldwide have seized funds in hundreds of crypto wallets linked to Hamas. The debate over crypto's role in funding terrorism continues
In response, Israeli authorities froze Hamas-linked crypto accounts with the help of exchanges, highlighting their commitment to combating crypto-funded crime
Some in the crypto industry argue that focusing on blockchain networks as a source of criminal funding is misguided and that restricting crypto could lead to unintended consequences
The ongoing crisis in the Middle East has raised questions about the impact of crypto donations on humanitarian efforts, but the challenge remains in delivering aid effectively to those in need