Israeli Police Freeze Hamas’ Cryptocurrency Accounts
Israeli police have taken action to freeze cryptocurrency accounts belonging to Hamas, the Palestinian militant group responsible for a recent attack on Israel. This move comes as a response to the escalation of violence between Israel and Hamas, which has resulted in thousands of casualties and an ongoing war. Following the attack, Israel’s defense minister ordered a blockade of Gaza, where the attack originated from. The Lahav 433 unit of Israel Police’s cyber division collaborated with the defense ministry, intelligence agencies, and cryptocurrency exchange Binance to identify and freeze these accounts.
Funds Seized Will Be Added to Israeli National Treasury
The frozen funds seized from Hamas will be added to Israel’s national treasury. It is worth noting that the U.S. Commodities Futures and Trading Commission (CFTC) has filed a lawsuit against Binance CEO Changpeng Zhao, alleging that the company was aware of “HAMAS transactions” on their platform. Israeli authorities have taken control of approximately 190 Binance accounts suspected of being connected to terrorist groups since 2021. Chainalysis, a blockchain intelligence firm, has assisted the Israeli government in seizing cryptocurrency addresses associated with fundraising efforts.
Hamas’ Use of Cryptocurrency Donations
Binance previously stated that it had cooperated with Israeli authorities in stopping a terrorism financing operation linked to Iran’s Quds Force and Hezbollah. Earlier this year, Hamas’ military wing, Al-Qassam Brigades (AQB), announced the shutdown of their crypto donation programs. The AQB is designated as a terrorist organization by Western countries due to its attacks on Israel and its allies. Cryptocurrency donations have allowed AQB to raise funds while avoiding the conventional financial system that largely excludes them. They have utilized websites and social media campaigns to request donations and provide instructions on how to buy and transfer cryptocurrency without detection by authorities.
Hot Take: Disrupting Terrorist Financing through Cryptocurrency Regulations
The freezing of Hamas’ cryptocurrency accounts by Israeli police demonstrates the importance of robust regulations to disrupt terrorist financing. By collaborating with blockchain intelligence firms and cryptocurrency exchanges, authorities can identify and seize funds associated with such activities. This action not only hampers the operations of militant groups like Hamas but also sends a message that cryptocurrencies cannot be used as a means to support terrorism. As the use of cryptocurrencies evolves, governments and regulatory bodies must continue to adapt their strategies to prevent illicit activities while ensuring the legitimate and secure use of digital assets.
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