Chainalysis: Some reports may overestimate the role of cryptocurrencies in terrorist financing

After Israel’s recent attack by Hamas, crypto data analysis company Chainalysis said that many people are wondering how various terrorist groups might use cryptocurrencies and looking to Chainalysis to answer these questions. But Chainalysis said some reports of supposed uses may have exaggerated metrics and used "flawed analyses." Chainalysis wrote in a blog post: “While terrorist financing accounts for only a small portion of illicit cryptocurrency transaction volume, some terrorist groups use cryptocurrencies to raise, store, and move funds. Terrorist groups have historically used, and may continue to use, traditional fiat-based methods such as financial institutions, hawalas (informal transfer methods) and shell companies as their main financing vehicles.”