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Israel's Crackdown on Crypto Accounts Linked to Hamas Donations Amid Israel-Palestinian Conflict

In the midst of one of the most serious escalations in the Israel-Palestinian conflict in years, the Israeli government has taken swift action to freeze crypto accounts used to solicit donations for the Palestinian militant group Hamas via social media. The move comes in response to Hamas launching devastating attacks from Gaza into Israel, raising concerns about the group's financing methods, including the use of digital currencies.

Hamas's Crypto Fundraising Campaign

As the conflict intensified, Hamas is suspected to have initiated a fundraising campaign on various social networks, urging the public to deposit cryptocurrencies into their accounts. The goal was to secure funds to support the group's activities amid the ongoing hostilities. The Israeli police, in collaboration with the Ministry of Defense, promptly responded to these suspicions by locating and freezing the cryptocurrency accounts associated with Hamas. Notably, their efforts were bolstered by the support of the renowned Binance cryptocurrency exchange, aimed at diverting the funds to the state treasury.

Details of the Frozen Accounts

The official statement released by the Israeli police did not provide specific details regarding the number of accounts frozen or the total value of cryptocurrency seized. This lack of detailed information underscores the sensitivity of the operation and the need for ongoing investigations. As of now, Hamas representatives have not issued a public statement in response to the freezing of their crypto accounts.

Collaborative Efforts with Binance

Binance, one of the world's largest cryptocurrency exchanges, played a crucial role in assisting the Israeli authorities with their efforts. A spokesperson for Binance emphasized that the exchange actively partners with global law enforcement agencies and regulators to combat illicit activities, including those involving cryptocurrency. They stressed that their data and intelligence are shared with these entities to identify individuals, addresses, and infrastructures associated with specific organizations, contributing to efforts to combat terror financing.

Hamas's History with Cryptocurrency

Hamas had previously endorsed cryptocurrency as a fundraising method for several years. However, in April, the group announced its decision to discontinue receiving donations in the cryptocurrency bitcoin. This shift was attributed to a perceived increase in "hostile" activities targeting donors. Despite this change, concerns remained about the group's use of other digital currencies for funding.

Israel's Seizure of Crypto Accounts

Recent reports revealed that Israel had seized approximately 190 cryptocurrency accounts at Binance since 2021. These seizures included accounts allegedly linked to the Islamic State and dozens owned by Palestinian firms with alleged connections to Hamas. Binance responded to these reports by asserting its commitment to working with law enforcement and using the intelligence and information available to them to identify individuals operating accounts for illicit organizations.

In Conclusion

The freezing of cryptocurrency accounts associated with Hamas's fundraising campaign is a significant development in the ongoing Israel-Palestinian conflict. It reflects the Israeli government's proactive approach to address concerns related to terror financing and the use of digital currencies in this context. As the situation continues to evolve, the collaboration between law enforcement agencies, regulators, and cryptocurrency exchanges like Binance remains pivotal in the effort to combat illicit activities and uphold financial security.