In the wake of the recent Hamas attack in Israel, crypto analytics firm Chainalysis said Wednesday that’s its been receiving lots of questions about how terrorist groups might be using cryptocurrency. But it said some reports about the supposed use might be overstating metrics and using “flawed analyses.”
“Although terrorism financing is a very small portion of the already very small portion of cryptocurrency transaction volume that is illicit, some terrorist organizations raise, store, and transfer funds using cryptocurrency,” it wrote in a blog post. “Terrorist organizations have historically used and will likely continue to use traditional, fiat-based methods such as financial institutions, hawalas, and shell companies as their primary financing vehicles.”