Israeli law enforcement authorities in early October blocked several cryptocurrency wallets used by the Hamas group.
Special services believe that radical Islamists collect donations in digital currencies. The Defense Ministry, the Police Cyber Unit and the Israel Security Agency took part in the operation to block the addresses.
Blockchain company Elliptic believes that the scale of the use of cryptocurrencies by terrorist groups is greatly overstated. According to analysts, extremist communities and organizations prefer to use fiat money to finance their activities.
Chainalysis came to a similar conclusion. It also believes that terrorists prefer to use cash rather than cryptocurrencies.
When using bitcoin and other virtual currencies, extremists have difficulties in exchanging and storing such an instrument. Therefore, cash is the most popular means of payment.