Israel Police shuts crypto accounts of Hamas amid war, aims to cut terror financing: Report
A special unit of the Israel Police has frozen the crypto accounts of Hamas amid the war that's engulfed the entire nation.
Highlights
- Israel Police has frozen crypto accounts of Hamas
- Binance aided in locating and freezing these accounts
The Israel Police's Lahav 433 cyber unit has taken action to freeze cryptocurrency accounts associated with Hamas, as announced in an official statement by the police.
According to the police spokesperson's unit, Hamas had been utilising these accounts to solicit funds via social media platforms starting last Saturday.
Lahav 433 is collaborating closely with the Defense Ministry, Shin Bet, and various other intelligence agencies to dismantle cryptocurrency channels being exploited by terrorist organisations. In a cooperative effort, the cryptocurrency exchange Binance assisted Israeli authorities in the identification and closure of these accounts.
Furthermore, Lahav 433 coordinated its efforts with the UK police to freeze an account held at Barclays bank, as reported by the Times of Israel.
Crypto's anonymous nature
Tracking cryptocurrency transactions poses a significant challenge due to the inherent anonymity and pseudonymity offered by blockchain technology. Unlike traditional financial systems, where transactions are often tied to identifiable individuals or entities, cryptocurrency transactions can be executed without revealing personal information.
This level of anonymity has made it an attractive tool for illicit activities, including terrorist organisations' (like Hamas in this case) efforts to wire money discreetly.
These groups exploit the decentralised and borderless nature of cryptocurrencies to facilitate fundraising and financial transfers without the same level of scrutiny that traditional banking systems undergo. As a result, law enforcement agencies worldwide face a complex task in attempting to trace and disrupt these clandestine cryptocurrency transactions that enable terrorist financing.
The 'good' side of crypto
In hindsight, prominent figures in Israel's Web3 community have come together to create the Crypto Aid Israel fund, aimed at aiding citizens displaced due to conflict.
The fund accepts donations in the form of Bitcoin, Ethereum, and stablecoins. The crypto donation campaign started on 9 October with the aim of collecting funds to help Israeli citizens affected by the conflict with Hamas who are in need of humanitarian assistance.
