Hamas terrorist group's funding trail has Indian connection: Details here
The Delhi Police investigation into a 2019 case reportedly uncovered a surprising link between Palestinian terror group Hamas's funding and an Indian cryptocurrency heist. The probe, following a complaint by a Delhi-based businessman, reportedly found that about Rs. 30 lakh worth of stolen cryptocurrencies from an Indian wallet were traced to wallets connected to Hamas' military wing, Al-Qassam Brigades. While Israel had already seized some of these wallets, others are reportedly still operational in Egypt and Palestine.
Why does this story matter?
Due to the decentralized nature of crypto, digital currencies can be traded quickly, making them a valuable tool for transferring funds into conflict zones. In May, Israel announced the seizure of over 190 crypto accounts at Binance since 2021, including two it claimed were tied to the Islamic State and dozens it claims are controlled by Palestinian firms tied to Hamas. Given the potential benefits and risks of cryptocurrency, public and commercial organizations across sectors are mulling new regulations.
What Delhi Police probe revealed
The case has resurfaced amid claims that Hamas has begun a cryptocurrency fundraising campaign, per India Today. The probe was initiated following a complaint by a Delhi businessman with the Pashchim Vihar police station in 2019 stating that he had been cheated of his cryptocurrencies. Cryptocurrencies including Bitcoin, Ethereum, and others worth Rs. 30 lakhs were among those stolen and moved to unknown accounts.
Significant crypto flow to Hamas
Blockchain analytics reports and Israeli government seizure orders have exposed the flow of significant funds to militant groups like Hamas, Palestinian Islamic Jihad (PIJ), and their Lebanese ally, Hezbollah, according to a report by The Wall Street Journal. It states that digital currency wallets linked to PIJ received a staggering $93 million in cryptocurrency between August 2021 and June of this year. The comprehensive analysis cited in the report was conducted by renowned crypto researcher Elliptic.
Israel's swift action to freeze crypto accounts
Upon suspicions about Hamas's fundraising campaign gathering financial support from people via social networks, Israel reportedly took swift action. The Israeli Police Cyber Unit and the defense ministry worked together with the Binance crypto exchange to locate and freeze these cryptocurrency accounts. Reportedly, the official move was aimed at diverting the funds to the state Treasury. However, the Israeli authorities have yet to publicize details about the number of frozen accounts and the amount of seized cryptocurrency.
Hamas's changing stance on cryptocurrency fundraising
The WSJ reported that Hamas would always endorse cryptocurrency as a fundraising method. However, in April, the group announced it had stopped accepting fundraising via Bitcoin due to an increasing crackdown on donors. Cryptocurrency worth hundreds of millions of dollars has also been donated to Ukraine in its conflict with Russia. As of May, over $212 million in cryptocurrency had been given to pro-Ukrainian war efforts, according to Elliptic.
