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Wall Street Journal Controversy: Data Firm Elliptic Clarifies Overstated Hamas Cryptocurrency Donations

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Wall Street Journal Controversy: Data Firm Elliptic Clarifies Overstated Hamas Cryptocurrency Donations

The data from analysis firm Elliptic was cited in a controversial article by The Wall Street Journal. Elliptic came forward to clarify that the report inaccurately referenced their data. Despite this, the journalist of the article refused to retract the report and defended their position on Twitter.

Did The Wall Street Journal Exaggerate the Facts?

The Wall Street Journal previously reported that "Hamas-related crypto wallets received $41 million," not only deepening the negative public perception of cryptocurrency but also increasing potential regulatory pressures, which Senator Elizabeth Warren, known for being anti-crypto, seized to push the Digital Asset Anti-Money Laundering Act.

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Ryan Selkis, the founder and CEO of Messari, has previously stated that Hamas had already realized the traceability of cryptocurrencies and stopped using them for fundraising back in April.

Cryptocurrency analytics firm Elliptic published a lengthy post on October 25 to refute The Wall Street Journal's claims.

Elliptic: The Wall Street Journal is Mistaken

The Wall Street Journal quoted data from Elliptic in its report, claiming that from August 2021 to June this year, wallets associated with the militant group PIJ received up to $93 million in cryptocurrency.

The report also cited data from another institution, BitOK, stating that Hamas-related wallets received around $41 million during the same period.

Elliptic clarified several points:

  1. Since October 7, Hamas has only received $21,000 in cryptocurrency, which was quickly frozen.

  2. The PIJ wallets "received" $93 million in cryptocurrency, which does not mean they raised that much money.

  3. These wallets also involve exchange wallets, and it cannot be confirmed whether all the funds belong to PIJ.

Elliptic: Collaborating with Relevant Parties to Clarify the Facts

Elliptic stated that they are working with representatives of Senator Elizabeth Warren and the authors of The Wall Street Journal to clarify the facts.

However, the journalist of the article, Ian Talley, seems to be very adamant about the initial report. Despite numerous calls from the crypto community to retract the report, he continues to cite data in his tweets that support his arguments.