In a significant move against the financing of terrorism, Israeli authorities, in collaboration with the global cryptocurrency exchange Binance, have frozen multiple cryptocurrency accounts linked to the Palestinian militant group, Hamas. This action underscores the increasing scrutiny on the use of digital currencies by extremist groups to bypass traditional financial systems and sanctions.
The operation, which took place on Tuesday, October 10, 2023, was a joint effort involving Israel's cybercrime unit, the Ministry of Defense, the Israel Security Agency, and national intelligence agencies. Binance played a pivotal role in the identification and deactivation of these accounts, reaffirming its commitment to the safety and security of the global blockchain ecosystem.
A spokesperson from Binance emphasized the company's proactive stance on such matters, stating, "We are committed to supporting the safety and security of the blockchain ecosystem and the global community through our proactive work."
Israeli police highlighted that these frozen accounts were not only created by Hamas but had been actively used to solicit funds in support of terrorist activities across various social media platforms since the preceding Saturday. In a parallel operation, Israeli authorities, in conjunction with the Police Cyber Unit and British police, also seized a Barclays Bank account in the UK, which was similarly used to amass donations for the same cause.
This isn't the inaugural instance of extremist groups turning to cryptocurrencies. In 2019, Hamas sought crypto donations as a means to circumvent international sanctions. A subsequent investigation in 2021 led Israeli authorities to seize over 190 Binance accounts, the majority of which were linked to Palestinian firms affiliated with Hamas.
Blockchain analytics firm Chainalysis estimates that over recent years, Hamas has successfully procured tens of thousands of dollars via cryptocurrency. However, in a surprising move in April, the military branch of Hamas declared the cessation of all crypto donation initiatives. This announcement was shortly followed by the Israeli government's confiscation of nearly $1.7 million in cryptocurrency associated with Hezbollah and the Iranian paramilitary Revolutionary Guard's elite Quds Force, both of which the United States has labeled as terrorist organizations.
In the backdrop of these relentless attacks on Israel, the local crypto community has launched "Crypto Aid Israel," a fundraising initiative aimed at aiding citizens displaced by the ongoing conflict. This community is accepting donations in various cryptocurrencies, including BTC, ETH, USDT, and USDC.
Earlier this year, during the Russia-Ukraine conflict, Ukraine garnered nearly $70 million in crypto donations, predominantly in Bitcoin and Ethereum, highlighting the growing influence of digital currencies in global geopolitics.
As the digital currency landscape continues to evolve, the actions of Israeli authorities and Binance underscore the importance of vigilance and collaboration in ensuring that these platforms are not misused by entities with malicious intent.
