A top official with the U.S. Department of the Treasury confirmed earlier reports that Hamas relied heavily on crypto were faulty. (Jesse Hamilton/CoinDesk.)

U.S. Treasury Backs Down Narrative That Hamas Relied on Crypto to Fund Terrorism

Summary

Hamas' crypto funding for attacks in Israel was exaggerated. The U.S. Treasury's top official on terrorism financing stated that the reported crypto payments to Hamas were overblown. The Wall Street Journal's initial report tying millions in crypto to terrorists was revised after blockchain analytical firms refuted it. Lawmakers continued to use the data for legislative efforts despite the reassessment. The Treasury clarified that terrorists prefer traditional methods of support and are targeted with sanctions. The government aims to disrupt groups' use of digital assets and seeks additional tools and resources for combating illicit finance.