The analysis firm Elliptic states that the scale of crypto-based terrorist financing has been largely misrepresented, and there is no concrete evidence to suggest that terrorist groups have successfully utilized digital currencies.
$21,000 Donation Frozen
Elliptic also mentioned that Hamas requested Bitcoin donations in 2019, but terminated these activities in April due to security concerns. The company reports that since the Israeli attacks on October 7th, only $21,000 in new crypto donations has been received, and most of it has already been frozen.
Reports Are Largely Exaggerated!
Additionally, another crypto analysis firm called Chainaliz argues that reports on terrorist organizations using crypto are greatly exaggerated and may involve “faulty analysis.”
Adam Zarazinski, the CEO of another crypto-focused data analytics firm, Inca Digital, continues to emphasize before the House Financial Services Committee that cryptocurrencies have the potential for both security and financial democratization. He also points out their potential to promote economic growth and encourage global financial participation.
“Cryptocurrencies can be used in activities that challenge our security and values, but at the same time, they also have the potential to democratize financial systems.”Adam Zarazinski
Source: The Block