In recent years, we have witnessed the rise of cryptocurrency as a popular medium of exchange and investment. However, it has also become a tool for various illegal activities, including terrorist financing. Israel has been working diligently to prevent such activities and has seized nearly 200 Binance accounts since 2021 that have ties to Islamic terrorist groups.
According to Reuters, two of these accounts belonged to the infamous Islamic State (ISIS), while the remaining accounts belonged to three firms that have links to the Hamas group. Reuters was unable to disclose the total amount of cryptocurrency seized from these accounts, but the National Bureau for Counter Terror Financing (NBCTF) revealed in April that they had seized cryptocurrency worth over $137,000 from 80 Binance accounts belonging to these three firms.
The NBCTF has described these firms as “terrorist organizations,” but one of the companies, Al Mutahadun For Exchange, has denied any involvement in cryptocurrency and stated that they only work with fiat money. Despite these claims, Israel’s actions suggest otherwise.
In December, reports suggest that Israel had seized at least $33,500 and $750,000 worth of cryptocurrency from Hamas-linked wallets on separate occasions.
The Israeli authorities have been cracking down on these illegal activities and have taken the necessary steps to prevent future occurrences.
In March of this year, the US CFTC charged Binance executives, claiming that they knowingly discussed and allowed transactions connected to the Hamas group. Binance has denied these allegations, but it further emphasizes the need for regulators and authorities to take this matter seriously.
The ongoing fight against terrorism financing requires continuous efforts and collaboration from international authorities to prevent the misuse of cryptocurrencies. Israel’s actions signify their commitment to prevent such activities and serves as a reminder to the industry that regulations and compliance are essential to maintain a healthy and trustworthy ecosystem for the benefit of everyone involved.