Reported by Agency Staff

Hamas, sanctioned as a terrorist organisation by the US, Britain and other countries, had increasingly used cryptocurrencies, credit cards or contrived trade deals to avoid mounting international restrictions, said Matthew Levitt, a former US official specialised in counterterrorism.

“Hamas has been one of the more successful users of crypto for the financing of terrorism,” said Tom Robinson, co-founder of blockchain research firm Elliptic.

However, this year Hamas said it would back away from crypto, after a spate of losses. Cryptocurrencies’ ledger systems can make such transactions traceable.

Blockchain researchers TRM Labs said this week in a research note that crypto fundraising has previously increased following rounds of violence involving Hamas. After fighting in May 2021, Hamas-controlled crypto addresses received more than $400 000, TRM Labs said.

However, since last weekend’s violence, prominent Hamas-linked support groups had moved just a few thousands dollars through crypto, TRM noted.

“One likely reason for the low donation volume is that Israeli authorities are targeting them immediately,” TRM said, adding that Israel had seized cryptocurrency worth “tens of millions of dollars” from Hamas-linked addresses in recent years.

Between December 2021 and April this year, Israel seized almost 190 crypto accounts it said were linked to Hamas.

Whether through crypto or other means, Hamas’s allies have found ways to get money to Gaza. The US state department has said that Iran provides up to $100-million annually in support to Palestinian groups including Hamas, and has cited methods of moving the money through shell companies, shipping transactions and precious metals.

Iranian authorities did not immediately respond to a request for comment.

By last year, Hamas had established a secret network of companies managing $500-million of investments in companies from Turkey to Saudi Arabia, the US treasury has said, announcing sanctions on the firms in May, 2022.

Read full report: https://techcentral.co.za/how-terror-group-hamas-uses-crypto-to-bypass-sanctions/233353/