Hamas Fundraising Efforts Backfire As US and Israel Track Crypto Donations

Hamas finds crypto fundraising comes with unintended transparency, millions seized by enemies.

Hamas attempted to use Bitcoin for fundraising, thinking it could bypass US and Israel sanctions. However, the plan failed as the transactions can be tracked, leading to the exposure of key donors.
Hamas' adoption of Bitcoin led to the United States and Israel seizing millions of dollars. This inadvertently ended up financing these nations' efforts against Hamas.
When Hamas first began soliciting Bitcoin donations in 2019, it incorrectly communicated to its supporters that Bitcoin transactions were anonymous and untraceable. This misunderstanding set Hamas up for failure as transactions in the blockchain are public and can be traced.
Hamas abandoned Bitcoin and all cryptocurrency donations in April 2023, due to increased surveillance from the US and Israel. The enforcement of these nations led to a significant drop in Hamas' cryptocurrency donations.
The US Treasury's Financial Crimes Enforcement Network (FinCEN) is planning to impose new rules on foreign cryptocurrency mixers, often used to mask the origins of transactions, by designating them as tools for money laundering. This proposal was connected to the recent use of cryptocurrency by Hamas and allied organizations.