On October 5, the U.S. Treasury named a Hamas fundraising network that raised more than $2 million through so-called humanitarian charities, with hundreds of thousands of dollars flowing through cryptocurrency.
That share isn’t high, but it’s enough to make the point: crypto isn’t the main channel for terrorist financing; it’s a workaround. Where traditional finance is cut off, it fills the gap. That’s also where the compliance blind spot lies: the shell of a charity combined with on-chain transfers makes both sides hard to penetrate.
Counterterrorism enforcement is increasingly relying on on-chain analysis, but there’s still a gap between exchanges’ KYC checks and on-chain tracking. I’ve been watching this gap for a while, and every time I see a case like this, it’s still there. $BTC
That share isn’t high, but it’s enough to make the point: crypto isn’t the main channel for terrorist financing; it’s a workaround. Where traditional finance is cut off, it fills the gap. That’s also where the compliance blind spot lies: the shell of a charity combined with on-chain transfers makes both sides hard to penetrate.
Counterterrorism enforcement is increasingly relying on on-chain analysis, but there’s still a gap between exchanges’ KYC checks and on-chain tracking. I’ve been watching this gap for a while, and every time I see a case like this, it’s still there. $BTC
