Hamas Exploits Global Financial Network and Cryptocurrencies to Circumvent Sanctions
Hamas, a terrorist organization, has been using a global financial network to receive support from sympathetic nations and charities. To bypass international sanctions, they have also been utilizing various methods, including cryptocurrencies. As a result, Israeli authorities have taken action by freezing multiple crypto accounts and confiscating millions of dollars’ worth of crypto coins following an attack on the country.
Israel Cracks Down on Binance Accounts Linked to Hamas
According to a report by the Financial Times, over 100 accounts on the Binance exchange suspected to have links with Hamas have been closed since the start of the terrorist group’s assault on October 7. Israeli authorities are also seeking additional information on around 200 crypto accounts, most of which are held on Binance.
This move is part of a broader global effort to regulate and oversee digital currencies in order to combat their misuse for illicit purposes. Cryptocurrencies have become attractive to terrorist organizations due to their decentralized nature and potential for user anonymity.
Binance has confirmed that it has blocked a “small number” of accounts on its platform in compliance with recognized sanctions rules. However, specific numbers have not been disclosed.
Israel Identifies Donation Campaigns Linked to Hamas
During this period of conflict, approximately 150 donation campaigns associated with Hamas and other groups have been identified by Israeli enforcement efforts since October 7. Last week, the Israeli police force announced through social media that it had frozen several accounts used by Hamas for fundraising.
In a lawsuit filed by the Commodity Futures Trading Commission (CFTC) against Binance in March, US financial regulators alleged connections between funds held on the exchange and Hamas. The lawsuit claimed that senior Binance executives had received information about “Hamas transactions” in 2019. Binance intends to contest the lawsuit.
Tether Takes Action Against Illicit Activities
Tether, a prominent stablecoin issuer, has frozen 32 addresses containing $873,118.34 that were found to be linked to illicit activities in Israel and Ukraine. The company has partnered with the National Bureau for Counter-Terror Financing of Israel (NBCTF) to combat terrorism and warfare funded through cryptocurrencies.
Hot Take: Combating Terrorist Financing in the Crypto Space
The recent actions taken by Israel, including freezing crypto accounts and seizing funds linked to Hamas, highlight the ongoing challenge of combating terrorist financing in the crypto space. Cryptocurrencies provide a decentralized and anonymous platform that can be exploited by terrorist organizations to raise funds. Governments and regulatory bodies around the world are increasingly working together to regulate digital currencies and prevent their misuse for illicit purposes. This serves as a reminder that while cryptocurrencies offer many benefits, they also pose significant risks that need to be addressed through effective regulation and enforcement.
By
By
By
By
By