Beside acceptance as a means of payment, application in the dark web world, Bitcoin has also marked its presence among the terrorist group. According to the latest report, the militant arm of Hamas, Izz el-Deen al-Qassam Brigades is hitting the crypto market by accepting bitcoin as a means of donation but regulators face tracking such finances.
Complex Transaction Mechanism to Frustrate Authorities
Al-Qassam Brigades, the military wing of Palestine’s Hamas has reportedly received $7000 as a donation in cryptocurrency. Although the group is urging supporters to send a donation in Bitcoin, reports reveal that tracking of the funds for regulators become difficult. It was reported by Reuters on April 26 wherein the blockchain intelligence firm, Elliptic explains Bitcoin as a donation for the militant arm of Hamas and how regulators are uptight over targeting the funds because the group is using a complex mechanism to make transaction tracking difficult.
As per Wiki research, the Izz ad-Din al-Qassam Brigades was created in mid-1991. It is the military wing of the Palestinian Hamas organization. In late January, the group has launched its fundraising campaign which explains user to donate funds in Bitcoin – according to reports ‘the campaign has raised approximately $7400 within four-month of launching fundraising campaign (from Jan-April).
Nevertheless, the group is already proscribed by the United States and the European Union (EU). Since the bitcoin transaction is difficult to trace/track, Al-Qassam Brigades opts it as an effective way – moreover, it had first asked supporters to send bitcoin to only one wallet address but the new process that it is following – generating new ‘digital wallet with every transaction.
Reuters reported Elliptic research’s view on the new mechanism of this group as;
a different wallet for each donation makes this so-called tagging far more complicated,
As per the United States and Israel, Hamas usually received tens of millions of dollars in annual funding from Iran and as such, this amount is simply a fraction of it. From the reports, it reveals that Iran is the country backing significant support for this group.
Elliptic co-founder, Tom Robinson, explaining about the group says that;
“They are still in experimentation stage – trying it out, seeing how much they can raise, and whether it works,”
So readers, what’s your stake on Bitcoin as donation for terror group.? Let us know in the comment below