The Israeli police, have frozen multiple crypto accounts that are allegedly associated with Hamas, a Palestinian militant group, The Financial Times said on Tuesday. Its action has been undertaken in collaboration with Binance, a global crypto exchange, aiming to disrupt the flow of funds to Hamas. To identify and freeze these funds, the Israeli police’s Cyber Unit worked together with the Ministry of Defense, the Israeli Security Agency, and other national intelligence agencies.
Insiders, who possess direct knowledge of Israel’s enforcement efforts, have informed the Financial Times that over 100 accounts on Binance, the world’s largest cryptocurrency exchange, are closed in response to Hamas’s assault. The assault commenced on Oct 7. Additionally, these sources reveal that authorities have requested information about approximately 200 more cryptocurrency accounts. It is noteworthy that the majority of these accounts are held on Binance.
Binance followed the necessary protocols and closed certain accounts to demonstrate compliance with globally recognized sanctions regulations. However, the company has not offered any further comments on this issue. Surprisingly, Binance CEO Changpeng Zhao has remained tight-lipped about the asset seizure.
The revelation followed after Israeli research firms revealed yesterday that Hamas received significant funding through crypto-currency sites. Tether, a prominent issuer of cryptocurrencies, recently took action by freezing 32 digital wallets. These wallets collectively held $800,000, and this move was part of Tether’s proactive measures to ensure security and stability in the cryptocurrency.
Hamas Linked To $41 Million In Crypto Donations Since Oct 7 Attack
Israeli intelligence forces have reported a frequent emergence of links to Hamas crypto donation sites since the Oct 7 attack. A Tel Aviv-based firm, BitOK, analyzed suggesting that between August 2021 and June 2023, Hamas and its military wing received approximately $41 million in digital currencies.
The Wall Street Journal reported that Elliptic, a distinct cryptocurrency research company, has conducted additional investigations revealing that wallets associated with Palestinian Islamic Jihad, another recognized terror organization, received approximately $91 million within the same time frame.
However, Organizations that accept cryptocurrencies, bypassing traditional financial intermediaries, can avoid imposed sanctions intended to restrict their financial support.
These revelations coincide with heightened efforts by U.S. authorities to oversee and regulate the broader cryptocurrency sector. Senator Elizabeth Warren emphasized, “The threat of cryptocurrency-funded terrorism is tangible and warrants immediate attention from Congress.”
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