Al-Qassam Brigades to Discontinue Bitcoin Donations Amid Safety Concerns for Don...

The Palestinian Al-Qassam Brigades, the armed wing of the Hamas organization, has reportedly decided to cease accepting Bitcoin donations. This decision comes as a result of growing concerns over the safety and well-being of their donors.

Israeli Authorities’ Involvement in tracking cryptocurrency transactions

Israeli authorities have long suspected the group financing its military campaigns through cryptocurrencies. Over the past few years, the Defence Ministry has seized over 100 digital wallets linked to the Al-Qassam Brigades.

According to a local media report, the military wing of the Islamic resistance movement will no longer accept contributions via Bitcoin, a method they have utilized for years. This move’s primary motivation is to protect their donors better.

The Al-Qassam Brigades stated, “This comes out of concern about the safety of donors and to spare them any harm.”

Potential implications of ceasing cryptocurrency donations

Gaza economist Mohammad Abu Jayyab suggests that the organization may have halted cryptocurrency donations due to fears that Israeli agencies could identify those who transferred funds in this manner or gain access to their wallets. He also proposed that the Al-Qassam Brigades might transition to traditional finance methods or explore more advanced options.

Hamas is considered a terrorist group by several countries, including the United States and the United Kingdom. Providing them with funds, training, or any form of military support is illegal.

In 2020, US authorities stopped a joint fundraising effort by Hamas, al-Qaeda, and the Islamic State that aimed to raise funds through digital assets. They confiscated $2 million worth of cryptocurrency during this operation.

The Role of Cryptocurrencies in Financing the Palestinian Organization

Reuters reports that most Bitcoin donations from the Palestinian organization come from the Muslim world, which predominantly supports their fight against Israel.

Over the years, numerous sources have claimed that Hamas has utilized various cryptocurrencies, including Bitcoin, Ether, Dogecoin, and Tether, to fund its terrorist activities. In 2021, Israel’s National Bureau for Counter-Terror Financing successfully seized 84 digital wallets associated with the group.

London-based blockchain analysis firm Elliptic discovered that these addresses had received over $7.7 million in cryptocurrency. However, they noted that not all of the funds should be linked to terrorism, stating:

“Some addresses are part of larger services, and not all these funds may be associated with terrorism. When calculating this figure, we excluded funds sent to addresses known to be used by services such as exchanges to receive deposits from multiple users.”

Ongoing efforts to combat Hamas’ financial networks

In a joint operation between Israel’s Defence Ministry, the police, and the military in 2022, authorities confiscated 30 cryptocurrency wallets from 12 accounts belonging to al-Mutahadun, an exchange allegedly involved in financing the Palestinian entity.

As the Al-Qassam Brigades announce their decision to stop accepting Bitcoin donations, it remains to be seen how this will impact their financial operations and the safety of their donors.

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