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Hamas’s Sudden Pivot: Discontinuing Bitcoin Fundraising and its Underlying Reasons.

Hamas, Bitcoin, and the Global Crackdown on Cryptocurrency Funding

Historically supported by Iran and categorized as a terrorist group by the US and the EU, Hamas has discovered a new source of funding: cryptocurrencies. They have accessed a global network of supporters through online channels, and they ask for and accept donations in cryptocurrency. It’s an intricate game meant to get around banking regulations and fines.

The U.S. Justice Department has been hot on their trail, looking into Hamas’s role in cryptocurrency money laundering, which has its roots in crypto accounts connected to Hamas that were seized by the American government in the past. Furthermore, Israel has apparently seized crypto addresses worth tens of millions of dollars that were purportedly connected to Hamas. 

Additionally, the game of crypto financing isn’t solely played in the dark. Hamas has bravely shared their cryptocurrency wallet addresses openly on websites like Facebook and the website that was briefly known as Twitter, encouraging fans to give. In one egregious incident from 2019, a New Jersey man outright claimed on Instagram that he had donated to Hamas and later admitted to covering up his attempts to give the organization money.

“Buy Cash,” a Gaza-based crypto enterprise, was linked to previously seized wallets by Israel and its recent crackdown by the U.S. Treasury for alleged ties to Hamas.

However, Hamas is not having an endless field day. Al-Qassam Brigades, the military branch of Hamas, announced in April that it will stop accepting donations in Bitcoin as a result of increased scrutiny and hazards, signaling a strategic reversal.

In light of these recent financial crackdowns, it’s becoming clearer that Hamas’s foray into the world of cryptocurrency might not be the unrestricted goldmine they had initially envisioned. The stringency of blockchain analytics and the relentless pursuit by global agencies are closing in on the nefarious use of digital currencies. Hamas’s recent decision to discontinue Bitcoin fundraising might be an acknowledgment of this tightened net. In the evolving landscape of digital finance, it seems even the shadows aren’t as safe as they once were for such operations.

Back to ‘Understanding the Blockchain Influence on Israel-Palestine Relations.’

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