Analysts at Berenberg Capital Markets believe that the impact of Coinbase’s lobbying efforts in the United States is greatly weakened by reports of the use of cryptocurrencies by the Islamist organization Hamas.

Coinbase continues to face problems in the US despite its campaign to push Congress for more clarity on cryptocurrencies, a report says.

“The threat to Coinbase’s business comes not from its operating performance, but from the various litigation it faces in the US,” said Berenberg analyst Mark Palmer.

Reports that Hamas used cryptocurrency to raise funds ahead of the attacks in Israel earlier this month could weaken Coinbase’s efforts, Palmer added.

“Although Hamas announced last April that it would no longer use cryptocurrency to raise funds due to the ability of authorities to track its movement on blockchain ledgers, we believe that recent reports will not provide clarity on the legal status of cryptocurrencies,” Palmer said.

Last week, Israeli authorities froze cryptocurrency accounts used by Hamas to raise funds, according to a report. Recently, the Binance cryptocurrency exchange announced that it had already blocked more than a hundred wallets at the request of the Israeli authorities.

The day before, Tether announced that it had frozen 32 wallets containing USDT stablecoins worth $873,118.34. According to company representatives, these addresses are associated with illegal activities in Israel and Ukraine.