Further investigation by Indian security agencies unveiled that these suspect wallets, which had received stolen cryptocurrencies from the Delhi businessman, were controlled by the cyber terrorism division of Hamas known as the Al Wassam Brigades.
Former DCP (Special Cell) KPS Malhotra, who conducted the investigation, confirmed this information to Times of India. The stolen cryptocurrencies were routed through multiple private wallets before ultimately ending up in Hamas-linked wallets.
Hamas Raised Over $41 Million in Crypto
According to an Israeli crypto analytics and software firm, Hamas received over $41 million in cryptocurrency between August 2021 and June 2023 leading up to an attack on Israel. During the same period, crypto wallets linked to Palestinian Islamic Jihad (PIJ) received approximately $93 million in cryptocurrency, as discovered through analysis by crypto researcher Elliptic.
The investigation also revealed that Hamas had initiated an online fundraising campaign during the recent conflict, urging the public to deposit cryptocurrencies into its social media accounts. However, Israeli police quickly froze these accounts.
Terror Financing in Crypto Remains a Challenge
In recent years, terrorist organizations have used cryptocurrencies to evade sanctions and raise funds. Authorities worldwide are actively working to regulate crypto and enforce KYC requirements and Anti-Terror Financing regulations, such as the Travel Rule. In April, the U.S. Department of the Treasury issued a report highlighting the failure of many decentralized finance (DeFi) services to implement anti-money laundering and countering the financing of terrorism (AML/CFT) obligations.