Crypto donations for Hamas being sought in Australia on Telegram app
The nation’s financial crime agency AUSTRAC has alerted the federal police to appeals on the Telegram messaging app for cryptocurrency donations to fund the militant group Hamas.
A channel titled Support Palestine on the Telegram app has spread antisemitic content and sought donations from Australian donors in bitcoin, ethereum and tether for Hamas’ terrorist fighters since October 9.
The Telegram channel available in Australia seeking donations in bitcoin and ethereum. Others give QR codes to solicit donations in crypto.
After being tipped off to the pseudonymous appeal for terrorist and civilian financing by The Australian Financial Review, AUSTRAC warned that financing of terrorism in Australia is a crime under the Criminal Code Act 1995.
The agency – which regulates all money transfer businesses captured by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 – added it had also reported the Telegram activity to the sanctions office of the Department of Foreign Affairs and Trade.
AUSTRAC also warned that it boasts digital intelligence and surveillance powers related to terrorist financing in partnership with national security services, but “does not comment on operational matters”.
Elsewhere, Home Affairs Minister Clare O’Neil cautioned that Australians who heed the call to fund Hamas on the dark web will fall foul of tough anti-terror laws.
“It’s illegal under Australian law to provide material support to Hamas, a listed terrorist organisation, including by providing any form of monetary support,” she said.
“Australians who want to send support to civilians in Gaza should do so through a reputable aid organisation like the Red Cross, who will make sure that money assists people in need and not a terrorist organisation that is engaged in horrific violence against innocent men, women and children.”
The Support Palestine Telegram channel continued to appeal for donations for “freedom fighters” and civilians in Gaza on Wednesday morning in Australia.
AUSTRAC’s legal power does not extend to policing communications devices or social media platforms such as Telegram.
However, the agency is responsible for regulating cryptocurrency exchanges and their compliance with international money transfer and terrorist financing laws, including obligations to report suspicious transactions and identify customers alongside payments beneficiaries.
On Monday, Assistant Treasurer Stephen Jones announced that Australian cryptocurrency exchanges would be subject to tougher regulatory and licensing laws from 2024 as outlined at The Australian Financial Review Cryptocurrency Summit.
The Financial Times reported on Tuesday that Israeli law enforcement agencies have lifted a campaign to halt the flow of crypto funding to Hamas by closing more than 100 accounts linked to crypto exchange Binance and seizing millions of dollars of cryptocurrencies.
Telegram controversy
Since its August 2013 launch, Telegram’s soaring popularity has stirred controversy as it morphed into the platform of choice for loosely organised supporters of Russia’s war on Ukraine, Islamic and right-wing terror groups, and disparate users promoting racism, financial scams, cryptocurrencies and anti-Western propaganda.
Telegram is now the fourth most popular app globally after WhatsApp, WeChat, and Facebook Messenger, with around 800 million monthly active users as of August, according to reports in TechCrunch. The app’s parent company, Telegram FZ-LLC, lists Dubai as its base.
In September 2021, the Financial Review revealed Telegram was used by “pump and dump” groups to illegally manipulate the prices of penny stocks. The Telegram groups named ASX Pump and Dump Channel and ASX Pump and Dump Group boasted about 1600 members when securities regulator ASIC sensationally intervened in the group chat by joining the channel and posting messages to warn the activity was monitored and potentially illegal.
After the revelations, ASIC published a note warning that anyone found guilty of using Telegram to manipulate securities markets faced a $1 million fine and up to 15 years in jail.
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