Israel police’s cyber unit, working in conjunction with UK authorities and the cryptocurrency exchange Binance, successfully froze cryptocurrency accounts used by the Palestinian Islamic group Hamas to receive donations. This move comes in response to the recent surge in violence initiated by Hamas in the Gaza Strip and the ensuing Israeli airstrikes, resulting in casualties on both sides.
Hamas, which governs the Gaza Strip, launched a surprise attack against Israel over the weekend, drawing parallels to the 1973 Yom Kippur assault. In retaliation, Israel launched heavy airstrikes in Gaza, causing significant damage to neighborhoods.
As of Wednesday, the estimated death toll in Israel exceeds 1,000 people, with around 900 casualties reported in Gaza.
The Israeli Police’s Cyber Unit, alongside the Ministry of Defense, the Israel Security Agency, and other national intelligence agencies, took decisive action to block cryptocurrency accounts on centralized exchanges that Hamas had been utilizing to fund their operations. Moreover, UK law enforcement assisted in freezing a UK-based Barclays bank account that Hamas openly disclosed for receiving donations.
The funds held in these accounts were redirected to the state treasury with the assistance of Binance, a prominent cryptocurrency exchange.
The exact amount of funds seized and the number of cryptocurrency accounts affected remains undisclosed.
Israeli authorities have underlined their unwavering commitment to continue the fight against terrorist financing and to target the financial assets of terrorist organizations strategically.
It’s important to note that while the use of cryptocurrency for funding terrorism is less common compared to traditional fiat currency, the Israeli Police discovered that Hamas had begun fundraising efforts through cryptocurrency accounts since the outbreak of hostilities over the weekend.
TRM Labs, a blockchain intelligence firm, has reported that Hamas is the first known terrorist organization to actively use cryptocurrency for its financial operations.
According to their recent findings, GazaNow, an organization based in Gaza that openly supports Hamas, has been actively soliciting donations through a cryptocurrency address.
This address, which became active in August 2021, received a total of $800,000 in contributions, with a relatively modest sum of less than $5,000 received since the recent attacks.
Since early 2019, Hamas’ military arm, the Izz al-Din al-Qassam Brigades, began exploring cryptocurrency as an alternative method for funding their military operations.
Their journey into cryptocurrency fundraising commenced with bitcoin donations solicited through their Telegram channel before transitioning to direct fundraising on their website, alqassam.net, as outlined by TRM Labs.
Over the years, Israel’s National Bureau for Counter Terror Financing (NBCTF) has consistently taken action against Hamas’ use of cryptocurrencies.
This has involved measures against Gaza-based businesses such as Dubai Co. For Exchange, al-Muhtadon, al-Mutahadun For Exchange, and al-Wefaq Co for Exchange.
Notably, the majority of the seized funds were in the form of Tether (USDT) tokens on the Tron network, as per TRM Labs’ findings.
Tether, being a centralized stablecoin issuer, holds administrative control over USDT and can respond to law enforcement requests. Approximately 50% of all USDT is hosted on the Tron network, according to data from DefiLlama.
In a previous report by Reuters in May, it was revealed that the Israel anti-terror finance squad had taken action against around 190 Binance accounts, alleging connections to both the Islamic State and Hamas.
This highlights the ongoing commitment of Israeli authorities to disrupt financial networks that support terrorism, whether through conventional banking or emerging cryptocurrency channels.
The collaboration between Israeli law enforcement, UK authorities, and Binance to freeze these cryptocurrency accounts underscores the international dimension of the fight against terrorist financing.
While cryptocurrency provides a degree of anonymity, law enforcement agencies worldwide are actively working together to ensure it does not become a haven for those seeking to fund acts of terror.
As the situation in the region continues to evolve, the issue of cryptocurrency and its potential misuse in funding conflicts and terrorism remains a matter of concern.
This recent action by Israeli authorities sends a clear message that they are committed to tracking and disrupting the financial channels that support terrorism, wherever they may be found.
