WSJ Corrects Article Misrepresenting Cryptocurrency's Role in Terrorist Funding
Summary:
The Wall Street Journal (WSJ) has corrected an article that misrepresented the role of cryptocurrencies in funding the terrorism activities of Hamas and other militant groups, quoting inaccurate data of $93 million. The updated article, citing blockchain forensic firm Elliptic, clarified that only a fraction of the initial figure (about $450,000) was sent to a wallet affiliated with terrorism, and a possible $12 million exchanged between Palestinian Islamic Jihad and Hezbollah since 2021. The correction followed demands for specificity in clarifications from various experts, despite WSJ's added context about Elliptic's research.
In an article that appeared on October 10, The Wall Street Journal (WSJ) has made some corrections following a misrepresentation of the role cryptocurrencies play in Hamas and other militant groups' funding for their terrorism activities. The initial article, which bore the title “Hamas Militants Behind Israel Attack Raised Millions in Crypto”, mentioned that the Gaza Strip-based Palestinian Islamic Jihad (PIJ) terrorist group managed to rake in $93 million from August 2021 to June 2023. It referenced a report by blockchain forensic firm - Elliptic.
The publication inaccurately implied that the $93 million seized from PIJ-linked wallets by Israel's counter-terrorism unit, as stated in Elliptic's report, were substantial contributions to PIJ's financing for its terrorism agenda. Contradicting this, the same Elliptic report claimed it was incorrect to state that all these funds were raised for financing terrorism. Chainalysis, another blockchain forensic firm, reportedly found out that only $450,000 from the total funds went to a wallet associated with terrorism.
The WSJ's correction mentioned that PIJ and the Lebanese political party Hezbollah could potentially have traded up to $12 million since 2021, a significantly smaller figure compared to the initially cited $93 million. The revised WSJ article incorporated more details from Elliptic's research and provided more context.
Following a request by Elliptic on October 25 for the WSJ to rectify the misinterpretation of data, the WSJ made these corrections. Elliptic also mentioned that despite the fixation on cryptocurrencies, other funding sources significantly outweigh the cryptocurrency contributions to Hamas's financial pool. While Elliptic appreciated the WSJ's corrections, it urged the publication to provide more specific clarifications.
Coinbase's chief legal officer, Paul Grewal, criticized the WSJ's article, stating that the introductory paragraph still incorrectly insinuates that cryptocurrency is a major financial source for Hamas's attack on Israel on October 7.
Multiple figures, like Nic Carter, a partner at Castle Island Ventures, are now urging US Senator Elizabeth Warren to withdraw a letter endorsed by over 100 U.S. lawmakers sent to the White House on October 17. The legislators' letter referenced the WSJ’s inaccurate data interpretation from Elliptic and warned that cryptocurrencies are a "national security threat" to the U.S., possibly paving the way for another "tragedy" if Congress and the Biden administration don't take immediate action.
Published At
10/28/2023 1:58:03 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.