Israeli authorities crack down on crypto accounts funding Hamas amid increased concern during the ongoing Israel war. By Coingape Staff 1 hour ago Updated 1 hour ago
Israeli law enforcement authorities have taken decisive action against cryptocurrency accounts suspected of financing Hamas, escalating their efforts to sever the links between crypto markets and the militant organization following the recent attacks. Notably, since the start of the conflict on October 7, Binance, the world’s largest cryptocurrency exchange, has closed over 100 accounts.
Additionally, authorities have requested information about nearly 200 other crypto accounts, with most of them being associated with Binance.
Cracking Down on Cryptocurrency Financing for Terror
Governments and regulators have long expressed concerns about terrorist organizations exploiting lightly regulated cryptocurrency markets for fundraising. However, the recent conflict and multiple crypto-based fundraising efforts by Hamas have heightened these concerns.
According to a Financial Times report, Tom Alexandrovich, the executive director at the Israel National Cyber Directorate, emphasized that during this time of conflict, cryptocurrencies have become a significant concern for terrorist financing due to limited alternative options. In addition, he pointed out a notable increase in cryptocurrency funds being channeled into Hamas-related activities since the conflict began.
Meanwhile, in the latest developments, Tether, a widely used digital token for crypto trading, announced that it had frozen 32 addresses containing over $873,000. The accounts were frozen on suspected links to “terrorism and warfare” in Israel and Ukraine. Notably, these actions come in response to numerous social media posts seeking cryptocurrency donations for Hamas-related organizations.
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According to the report, Israeli law enforcement has identified around 150 donation initiatives affiliated with Hamas and other groups since October 7. The Israeli police force also announced the freezing of an unspecified number of accounts used by Hamas for fundraising.
Meanwhile, U.S. financial regulators have previously raised concerns about links between funds held on Binance and Hamas. A lawsuit filed by the Commodity Futures Trading Commission alleged that senior Binance executives received information regarding Hamas transactions in 2019.
Challenges and Strategies
Addressing the link between crypto and Hamas funding is challenging, as Hamas often receives smaller amounts through crypto transactions to avoid money laundering suspicions. Notably, Israeli Defense Minister Yoav Gallant highlights that combating terror financing becomes even more complex when digital currencies are involved.
To counter these challenges, Israeli authorities have actively monitored crypto accounts suspected of terrorism financing. In addition, they are seeking the assistance of the public to identify and track the flow of suspicious funds across crypto markets.
Meanwhile, experts and officials emphasize the need for governments to stay vigilant and adapt quickly to the evolving landscape of digital assets. As the use of cryptocurrencies in terror financing grows, international regulators, including the Financial Stability Board, are developing frameworks to tackle terrorist financing in crypto assets.
