“This illustrates the weakness of crypto as a terrorism fundraising tool. The transparency of the blockchain allows illicit funds to be traced, and in some cases linked to real-world identities. In addition, users of cryptocurrencies typically make use of centralized services such as exchanges or stablecoins. These services respond to law enforcement requests to freeze funds with links to illicit activity, or do this proactively themselves based on insights from blockchain analytics…

Over the past two weeks, politicians and journalists have portrayed public crypto fundraising as a significant source of funds for Hamas and other terrorist groups, but the data simply does not support this. No public crypto fundraising campaign by a terrorist group has received significant levels of donations, relative to other funding sources.”