Cryptocurrency Freeze in Israel to Block Hamas Funding
Israeli law enforcement authorities have taken action to freeze numerous cryptocurrency accounts and seize millions of dollars‘ worth of crypto as part of efforts to obstruct the flow of funds to Hamas, as reported by the Financial Times. The crackdown primarily targets cryptocurrency accounts on Binance, the world’s largest cryptocurrency exchange.
Since Hamas’s assault began on October 7, authorities have closed more than 100 accounts on Binance and sought information on approximately 200 additional crypto accounts, the majority of which are held on the exchange. According to Tom Alexandrovich, the executive director at the Israel National Cyber Directorate, cryptocurrencies are playing an increasingly significant role in financing terrorism during wartime. The amount of crypto funds involved has surged significantly since the conflict began.
Tether Freezes 32 Addresses Linked to Terrorism Funding
Tether, a widely used digital token in the crypto market, has also taken action by freezing 32 addresses containing over $873,000, which were linked to „terrorism and warfare“ in both Israel and Ukraine. However, specific details regarding when these accounts were blocked and the distribution of assets between the two countries have not been disclosed.
Israeli authorities have identified approximately 150 donation initiatives associated with Hamas and other groups since October 7. The Israeli police force confirmed the freezing of multiple accounts used for Hamas fundraising but did not provide any comment on the actions taken against Binance.
The connection between cryptocurrency and terrorism financing is not a new concern, with US financial regulators previously alleging links between money held on Binance and Hamas. In March, a lawsuit by the Commodity Futures Trading Commission claimed that senior Binance executives had received information regarding Hamas transactions in 2019. Israeli authorities have been monitoring cryptocurrency accounts suspected of links to terrorism financing for some time, and these efforts have intensified since the recent conflict. The scale of these actions, particularly concerning Binance, has grown significantly.
To enhance their efforts, Israeli authorities are also seeking public assistance in identifying and tracking suspicious fund flows in the crypto market. Since 2021, they have seized millions in crypto accounts suspected of having links to Hamas and other terrorist organizations.
