Pseudonymous crypto founder Loopify raises $500,000 in crypto to fund humanitarian work in Gaza

Loopify, the pseudonymous crypto trader turned startup founder, has raised over $500,000 to fund humanitarian efforts in Gaza, he told The Block in an interview. 

The initiative has been going on for about a year, and has been documented with posts featuring photos and videos of disbursements of food, clothing and other supplies throughout. In March 2024, the largely independent effort raised its first $50,000, largely in SOL and ETH , within two weeks.

“This is the first time I’ve helped fundraise on my account and put my reputation behind something of this sort,” Loopify wrote on X on Thursday, announcing that he was visiting Jordan “to see and learn about the aid we are getting into Gaza.”

The conflict between Gaza and Israel is a complicated geopolitical event, involving decades — if not centuries — of competing claims to historically important land. Regardless if one takes a strong view on the issue, Loopify’s work is an interesting example of how crypto can facilitate charitable efforts, especially in such uncertain times. 

For instance, while the two belligerents are working towards a permanent ceasefire, U.S. President Donald Trump has proposed using the U.S. military to settle and rebuild the region, an idea that is, at the very least, unexpected. Trump’s administration, mainly through the newly established Department of Government Efficiency, is also working to dismantle much of the country’s diplomatic and humanitarian efforts through downsizing organizations like USAID.

Loopify, the founder of web3 education platform Pluid and blockchain gaming studio Endless Clouds, noted that last year, in light of Israel’s ongoing military operations in Gaza, a semi-autonomous territory with a distinct national identity, he looked for ways he could put his knowledge of and connections in crypto to work to alleviate the suffering that necessarily follows an occupation. 

“[My] motivation is simple, I donated six figs myself before any of this, what's happening is unacceptable --- I wanted to give people a pathway to help with crypto as I know many people struggle to offboard but want to help.”

He ended up contacting Human Appeal, which he described as a non-profit specializing in immediate disaster relief that has about 30 years of experience working with Gazans. Some previous reporting alleges the organization has links to Hamas — the militant group in control of Gaza since 2006 and recognized by some countries, including the United States, as a terrorist organization — via UAE-based Human Appeal International.

“This was the first time [Human Appeal used crypto], I reached out to them to help set it up,” Loopify said. He noted that using crypto is a “way easier” route to get funding to regions with limited banking and wire transfer options. 

“It’s global and easy without setting up an infra to convert currencies. It’s instant. Doesn’t require logins or extra details, just an open address,” he said. Loopify noted that he maintains control of the wallets and personally makes the conversions.

According to Arkham Intelligence, the effort's ETH address raised over $231,000 worth of tokens before being largely drained in July. It has since brought in and sold another $60,000 in ETH. How much was  raised in SOL is more challenging to disentangle because the public address appears to be labeled as Loopify's personal wallet, though it also saw a large selloff recently after hitting a balance of about $141,000.

The topic of terrorist financing via crypto was a hotly contested issue at the breakout of the war. In October 2023, the month of Hamas’ assault on Israel that reignited the hot conflict, over 100 members of the U.S. Congress accused Hamas of raising millions of dollars in crypto. Notably, blockchain forensics firm Elliptic said the scale of Hamas’ crypto fundraising was misrepresented . 

While Hamas has previously publicly posted wallet addresses online, Israeli authorities have been able to freeze or seize accounts related to the organization, leading it to stop proactively soliciting crypto donations. For one, Binance, accused by the U.S. DOJ of serving several sanctioned entities, including Hamas, vowed to work with authorities to curb illicit use of the exchange in its $4.3 billion settlement agreement.

Loopify stresses that his efforts are simply an attempt to bring hot food and clean water to the wartorn region, which, according to a UN investigation in September, has seen nearly half of its buildings either demolished or damaged. In several videos seemingly produced by Human Appeal, the organization thanks “Crypto Twitter” and Loopify for helping to pay to make and deliver tens of thousands of hot meals in the region. 

“With the ceasefire, which hopefully lasts, we are also working on getting different types of aid in such as prosthetics, mobile homes and more,” Loopify said. “Aid is as important as it was last month, and last year. The people of Gaza are still struggling and it will take a long time to rebuild, mentally and physically heal.”