Israeli authorities on Monday seized a bundle of 30 cryptocurrency wallets from 12 exchange accounts that have been linked to the Gaza Strip-based terror group Hamas.
The crypto exchange al-Mutahadun had the wallets in which 12 accounts were allegedly being used by Hamas leaders to finance terror efforts against Israel. The Times of Israel reported that the Israeli Defense Ministry said on February 28 that al-Mutahadun has aided Hamas’s military wing “by transferring funds amounting to tens of millions of dollars a year.”
The exact value of the seizures and specifically which crypto assets were seized is still unclear, however, Israeli Officials Believe Hamas Uses “Tens of Millions of Dollars” in Crypto Funds to Fund Its Army. Israeli Defense Minister Benny Gantz said in a February 28 statement:
“We continue to expand our tools to deal with terrorism and the companies that supply it with cheap oxygen pipeline.”
Law enforcement agencies and banks around the world, such as BNY Mellon, have increasingly been tracking cryptocurrency transactions to track down financial criminals and give them a blow. However, blockchain transaction tracking firm Chainalysis has determined that only a small part of cryptocurrency funds are used for criminal activities.
Hamas has been accepting cryptocurrency donations since 2019, when economic sanctions began severely restricting its ability to fight Israel.
The seizure of wallets was carried out with the help of Israel’s National Counter Terrorist Financing Office (NBCTF). The NBCTF carried out a similar seizure of Hamas’s crypto funds in July, seizing wallets containing Tether (USDT), Ether (ETH), Dogecoin (DOGE), XRP, Binance Coin (BNB), Zcash (ZEC) , Litecoin (LTC), and other assets.
The cryptocurrency tracking company Cyphertrace confirmed that the funds seized in July were used by the al-Qassam Brigades, a part of the Hamas military.
Cryptocurrency-based philanthropy is by no means limited to terrorist financing. In the first two months of 2022, supporters of the Freedom Convoy in Canada and the Ukrainian resistance force against Russia have raised millions in crypto donations.
Last month, crypto exchange Binance suspended services and trading to Israelis at the request of the Savings, Insurance and Capital Markets Authority.. The suspension is likely to be in place while the Authority reviews the status of Binance’s license to do business in the country.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.