The under-the-radar appeal of decentralised blockchain-based digital units has made them a breeding ground for illegal activities.
Ari Redbord, global policy head at crypto tracking specialist TRM Labs, said there is now less crypto transfer activity on pro-Hamas support networks as a result.This is “primarily because Israel has been very aggressive and successful in taking down these fundraising efforts”, he added. The shadowy world of digital units, based on decentralised blockchain technology, has gained notoriety for illicit transactions due to its under-the-radar appeal.
Redbord, formerly a senior US government adviser, said Hamas had adopted crypto from 2019 at the latest, to seek funding via the Telegram messaging network and even on its own website. “They are looking to Iran; they’re… imposing taxes on the Palestinians; they have a network of charities, and a diaspora of supporters who are sending donations not in cryptocurrencies.”Digital currencies still represent a significant revenue stream for Hamas and other allied groups.