Russian Exchange Facilitating Crypto Transfers for Palestinian Extremists
A recent report from the Wall Street Journal reveals that Palestinian militant organizations, including a Hamas-linked group, have been utilizing a Moscow-based crypto exchange called Garantex to transfer millions of dollars. This exchange, which is sanctioned by the U.S. Treasury Department, allows customers to convert Russian cash into cryptocurrency and then withdraw fiat money abroad. However, it has also been serving criminal gangs and wealthy Russians.
Islamic Jihad Receives $93 Million Payment through Garantex
The report states that Islamic Jihad, an extremist organization operating in the Hamas-controlled Gaza Strip, received a portion of a $93 million payment through Garantex. This highlights the platform’s involvement in facilitating financial transactions for fundamentalist groups.
Crypto Exchange Involved in Illicit Activities
Garantex has allegedly processed illicit transactions from ransomware group Conti and darknet market Hydra. It has also been implicated in money laundering activities for Russia’s largest crypto pyramid scheme, Finiko, and fundraising for the Russian far-right paramilitary unit Rusich.
Hamas Utilizes Similar Funding Scheme
The article suggests that Hamas, the Islamist political and military movement responsible for recent attacks on Israel, has employed a similar funding scheme to conceal transactions and bypass sanctions. This further demonstrates the role of Garantex in facilitating illicit financial activities.
Garantex Enables Conversion of Russian Rubles to Cryptocurrency
Garantex offers users the ability to purchase cryptocurrency using cash in Russian rubles. The digital coins can then be converted back into fiat money overseas. These transactions are difficult to track and halt effectively.
Ongoing Activity Despite Sanctions
Despite being sanctioned by the U.S. Treasury Department, Garantex remains active and has experienced a higher trading volume since the blacklisting. In June alone, its trading volume reached $865 million. This suggests that the exchange continues to operate despite restrictions.
Use of Binance for Crypto Donations
In addition to Garantex, it is reported that Hamas has also been using wallets on Binance, the world’s largest crypto exchange, to collect cryptocurrency donations. However, Israeli authorities have frozen these accounts with the assistance of Binance.
Hot Take: Moscow-based Crypto Exchange Facilitating Illicit Transactions for Palestinian Militants
The involvement of a Moscow-based crypto exchange in transferring millions of dollars for Palestinian militant organizations raises concerns about the effectiveness of sanctions and the regulation of cryptocurrency exchanges. The ability to convert Russian cash into cryptocurrency and withdraw fiat money abroad makes it difficult to track and prevent illicit transactions. This highlights the need for enhanced oversight and cooperation among international authorities to combat illegal financial activities facilitated by crypto platforms.
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