Israeli Authorities Freeze Cryptocurrency Accounts to Block Funds to Hamas
Israeli law enforcement authorities have taken action to freeze hundreds of cryptocurrency accounts and seize millions of dollars’ worth of crypto in an effort to prevent funds from flowing to Hamas, according to the Financial Times. The crackdown primarily targets accounts on Binance, the world’s largest cryptocurrency exchange. Over 100 accounts on Binance have been closed since the start of Hamas’s assault on October 7, with authorities seeking information on around 200 more crypto accounts, most of which are held on Binance. Tom Alexandrovich, the executive director at the Israel National Cyber Directorate, emphasized the growing role of cryptocurrencies in financing terrorism during wartime. The amount of crypto funds involved has significantly increased since the conflict began.
Tether Freezes 32 Addresses Linked to Terrorism Funding
Tether, a widely used digital token in the crypto market, has also announced that it froze 32 addresses containing over $873,000 that were linked to “terrorism and warfare” in both Israel and Ukraine. However, specific details regarding when these accounts were blocked and how assets were distributed between the two countries were not disclosed. Israeli authorities have identified around 150 donation initiatives associated with Hamas and other groups since October 7. While the Israeli police confirmed freezing multiple accounts used for Hamas fundraising, they did not comment on actions taken against Binance. The connection between cryptocurrency and terrorism financing is not new, as US financial regulators have previously alleged links between money held on Binance and Hamas.
CFTC Lawsuit Alleges Binance Executives Knew About Hamas-Linked Transactions
In March, a lawsuit by the Commodity Futures Trading Commission claimed that senior Binance executives had received information about Hamas transactions in 2019. Israeli authorities have been monitoring cryptocurrency accounts suspected of links to terrorism financing for some time, intensifying their efforts during the recent conflict. The scale of these actions, particularly involving Binance, has grown significantly. Israeli authorities are also seeking public assistance to identify and track suspicious fund flows in the crypto market. Since 2021, they have seized millions in crypto accounts suspected of having connections to Hamas and other terrorist organizations.
Hot Take: The Growing Challenge of Cryptocurrency and Terrorism Financing
The freezing of cryptocurrency accounts and seizure of funds by Israeli authorities highlights the increasing challenge of terrorism financing through digital assets. As cryptocurrencies gain popularity and become more mainstream, they provide new avenues for illicit activities, including funding terrorist organizations. Governments and law enforcement agencies around the world are grappling with this issue and taking measures to curb such activities. The actions taken by Israeli authorities against Binance and the freezing of Tether addresses linked to terrorism demonstrate the need for stricter regulations and greater cooperation between cryptocurrency exchanges, regulators, and law enforcement agencies. Addressing these challenges is crucial to ensuring the integrity and security of the cryptocurrency ecosystem.
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