Blockchain analytics firm, Chainalysis, revealed in a new report that Hay’at Tahrir al-Sham (HTS) experienced a surge in cryptocurrency donations before its triumph over Assad’s government in the Syrian Civil War. These findings have thrown light on the undercurrents of crypto involvement in the war-torn nation, with HTS, a previously less prominent faction in crypto solicitation activities, emerging as a significant player.
The report disclosed that HTS witnessed an apparent spike in cryptocurrency donations on November 27, marking the day the group launched a fresh offensive in the Civil War. These donations persisted throughout the swift campaign of HTS, eventually leading to the downfall of Assad’s regime.
According to the report, “One campaign received its first donation in late October and received a total of seven donations prior to the 27th, since which time it has received over 30 donations. Another campaign, which only began soliciting donations after the offensive’s start, has also received over 30 donations.”
Crypto donations, particularly anonymous ones, have been a persistent element in the Syrian Civil War for several years now. This was evident in the extensive efforts of the Islamic State in Iraq and Syria (ISIS) to solicit crypto contributions before its eventual dismantlement. US Senator Elizabeth Warren has been one of the key figures scrutinizing this activity, which has been commonly used in anti-crypto legislation efforts.
However, the role of HTS in this arena has been relatively minor until recently. The group, which has been soliciting crypto donations since at least 2021, reportedly employed an intricate laundering scheme making it challenging to determine the precise amount of funds received.
The report by Chainalysis has raised questions about the group’s future engagement with cryptocurrencies. Assad, with his country’s robust economic ties with Russia and Iran, was better positioned to venture into the crypto space. Both Russia and Iran, countries with a significant interest in cryptocurrencies, had endorsed crypto at the recent BRICS Summit.
However, with the defeat of Assad in the Civil War, HTS, which is highly unlikely to maintain positive relations with either nation, is left in a precarious situation. The report suggests that further crypto involvement by HTS is doubtful, given the regional instability and currency inflation. While these factors may encourage private use, similar to the situation in neighboring Lebanon, crypto is “not likely to emerge as a top priority” for HTS.
This research by Chainalysis presents a comprehensive picture of the complex dynamics of cryptocurrency use in conflict zones, particularly in the context of the Syrian Civil War. As the global adoption of cryptocurrencies continues, its implications for geopolitical conflicts and the role of non-state actors such as HTS warrant further scrutiny.
