WSJ Corrects the Articles on Hamas’ Usage of Digital Assets

The Wall Street Journal (WSJ) has issued a partial correction to an article that inaccurately portrayed the degree to which Hamas and other militant groups’ are using cryptocurrencies for financing their terrorist operations.

WSJ Article was Published on Oct 10

The article published on October 10, which was titled “Hamas Militants Behind Israel Attack Raised Millions in Crypto.” It also mentioned that the Palestinian Islamic Jihad (PIJ), a terrorist organization operating in the Gaza Strip, had reportedly generated up to $93 million in cryptocurrency funds between August 2021 and June 2023.

WSJ Claimed that Hamas and PIJ Raised Money via Crypto

However, the correction issued by the WSJ stated that Palestinian Islamic Jihad (PIJ) and the Lebanese political party Hezbollah “may have exchanged” up to $12 million in cryptocurrency, which is significantly less than the initial figure of $93 million.

The WSJ noted: “An earlier version of this article incorrectly said PIJ had sent more than $12 million in crypto to Hezbollah since 2021.”

Elliptic Saves the Day

As per the report, the acknowledgment of its mistakes by the WSJ was welcomed by Elliptic, the firm that provided the data. The Wall Street Journal’s retraction was prompted by a statement from Elliptic on October 25, where Elliptic urged The WSJ to address its misinterpretation of the data.

In the report referenced, Elliptic noted that Israel’s counter-terrorism unit had taken control of wallets associated with the Palestinian Islamic Jihad (PIJ), receiving $93 million. However, Elliptic clarified that this did not necessarily indicate that PIJ had raised these funds for the purpose of financing its terrorist activities. 

US Lawmakers Take Stand

Moreover, a letter by Nic Carter and many, has referenced the WSJ’s misinterpretation of Elliptic’s data as part of their argument that cryptocurrency constitutes a “national security threat” to the United States. They emphasized the need for prompt action by Congress and the Biden administration to prevent cryptocurrencies from being utilized to fund another “tragedy.”

In the meantime, Binance was recently reported to comply with Israeli law enforcement by freezing Hamas-linked accounts.