Jeff John Roberts, a crypto editor at Fortune, has argued that cryptocurrency should not be blamed for Hamas's recent attack on Israel. In an article for Fortune, Roberts stated that blaming crypto for the attack is a "mistake" and that Hamas should be held responsible instead.
"Bottom line: Don’t blame crypto for what happened in Israel," he said. "Blame Hamas."
According to the Wall Street Journal, Hamas has received $41 million worth of cryptocurrency since 2021. This has led some politicians, such as Rep. Brad Sherman, to label crypto as a "tool for terrorists." However, Roberts pointed out that the $41 million is a relatively small portion of the total funds Hamas receives from sponsors like Iran.
Furthermore, Roberts highlighted that the WSJ report failed to mention that Hamas recently stopped fundraising through bitcoin due to law enforcement agencies successfully tracing the transactions to Hamas members. He emphasized that cryptocurrency is a bad tool for terrorist funding because of its traceability.
Roberts also argued that if crypto were not an option, Hamas would have acquired the $41 million through other means, such as "shady bank accounts" or pallets of cash. He stated that blaming crypto for the attack overlooks the fact that Hamas's funding methods would have existed regardless.
On a recent episode of Crossing the Chain, the collaboration between private crypto companies, like Binance, and law enforcement agencies in investigating crypto-related crimes, was highlighted. Erin West, a deputy district attorney in Santa Clara County, praised the blockchain technology's transparency, stating that tackling crypto-related crimes is "doable."
Tigran Gambaryan, the head of Financial Crimes Compliance at Binance, also emphasized the benefits of blockchain technology in catching illicit actors. He shared how he has apprehended criminals associated with various crimes, including child abuse, drug trafficking, and public corruption.
Binance has been actively supporting Israeli law enforcement's efforts to cut off Hamas's funding. The company has been freezing accounts linked to the group, working "around the clock" to assist in the investigation.