Defense Ministry starts seizing Bitcoin being used by Hamas
The Defense Ministry says it has begun taking control of digital wallets being used by the Hamas terror group that contain virtual currencies from overseas donations.
Defense Minister Benny Gantz approved the seizure of a series of digital wallets on June 30 after a joint operation “uncovered a web of electronic wallets” used by Hamas to raise funds using Bitcoin and other cryptocurrencies, the ministry said.
The stockpiles of cryptocurrency were being operated from the Gaza Strip and have been part of Hamas’ efforts to raise funds from abroad following its bruising 11-day conflict with Israel in May.
In addition to Bitcoin, the Defense Ministry has succeeded in seizing such payments made in other digital currencies, including XRP, Ethereum, Tether and joke crypto Dogecoin, in accordance with the 2016 Counter-Terrorism Law.
“The intelligence, technological and legal tools that enable us to get our hands on terrorists’ money around the world constitute an operational breakthrough,” Gantz was quoted as saying in the statement.
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Noa Mashiah, the CEO of the Israeli Bitcoin Association, said that the news proves the safety of digital currencies.
“The seizure and forfeiture of Hamas’s donations proves that Bitcoin is a safe currency,” said Mashiah. “Criminals who make use of this financial system will find out the hard way that the open transaction log, the blockchain, will expose them and allow law enforcement agencies to act against them.”
Mashiah said the seizure marks “a significant improvement over the anti-money laundering ban and also over international bank accounts hidden behind a bank secrecy wall.” The news only further proves that Israeli regulators should “adopt and use” Bitcoin and other digital currencies, “as it makes it possible to expose the bad and do good with the good.”
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Omri Segev Moyal, CEO of the cyber crisis company Profero, said the digital footprint of such currency trading exchanges allows for security operatives to swoop in.
“Once you go beyond the boundaries of the blockchain to the worlds of trading platforms, you immediately lose anonymity and then, as in the present case, states and law enforcement agencies are able to locate and freeze the currencies of criminal and terrorist organizations,” said Moyal.
“In addition, when the network is completely exposed, you can very accurately track the trajectory of the coins and locate their final destination.”
In 2019, Hamas issued an appeal for donations from supporters via Bitcoin to help counter its financial woes. Months later, it launched an experimental program using a complex cryptocurrency system to raise money from international donors.
Last year, the United States Justice Department said it had seized millions of dollars from cryptocurrency accounts that terrorist groups, including al-Qaida and the Islamic State, relied on to finance their organizations and violent plots. Law enforcement officials said they seized more than 150 cryptocurrency accounts at the time that laundered funds to and from accounts operated by Hamas.
The Associated Press contributed to this report.
Israel says it is targeting Hamas’s cryptocurrency accounts
Israel says it ‘uncovered a web of electronic wallets’ used by Hamas to raise funds using Bitcoin and other cryptocurrencies.
Israel has said it will begin seizing cryptocurrency accounts used by the Palestinian Hamas group to raise money for its armed wing.
Israeli Defence Minister Benny Gantz ordered security forces on Thursday to seize the accounts after a joint operation, the ministry said, “uncovered a web of electronic wallets” used by Hamas to raise funds using Bitcoin and other cryptocurrencies.
It added that Hamas has been waging an online campaign to raise donations for its military wing, efforts that accelerated after the 11-day war in Gaza in May this year.
Cryptocurrencies such as Bitcoin are favoured for illicit transactions because they are perceived as hard to trace.
“The intelligence, technological and legal tools that enable us to get our hands on terrorists’ money around the world constitute an operational breakthrough,” Gantz was quoted as saying.
Hamas was democratically elected in 2006 and seized control of the Gaza Strip a year later from rival Palestinian party Fatah after the latter attempted a preemptive coup.
Since then, Israel has waged four major offensives on the besieged enclave, killing thousands of civilians. The latest one took place in May, killing 260 Palestinians, including at least 66 children. On the Israeli side, 13 people were killed, including two children.
A shaky ceasefire, brokered by Egypt, has been violated several times over the past month, with Israeli fighter jets targeting several areas it says belongs to Hamas military sites.
US seized hundreds of crypto accounts
Last year, the US justice department said it had seized millions of dollars from cryptocurrency accounts that armed groups, including al-Qaeda and ISIL (ISIS), relied on to finance their organisations and violent plots.
The department said it had confiscated about $2m, in addition to more than 300 cryptocurrency accounts, four websites and four Facebook pages related to the schemes.
One prong of the US investigation targeted the military wing of Hamas. Law enforcement officials seized more than 150 cryptocurrency accounts that they say laundered funds to and from accounts operated by the group.
Israel Begins Seizure of Bitcoin Donations Collected by Hamas – Bitcoin News
Israel Begins Seizure of Bitcoin Donations Collected by Hamas
Israel’s Defense Minister Benny Gantz has ordered the seizure of cryptocurrency funds raised by the Palestinian Islamist movement Hamas. His department has reportedly started taking control over digital wallets used by the terrorist group to collect crypto donations from abroad.
Defense Ministry of Israel Targets Crypto Addresses Used by Hamas
Minister Gantz approved the seizure of the wallets on June 30, the Times of Israel reported on Friday. The National Bureau for Counter Terror Financing (NBCTF) published a list of targeted addresses and wallet details used by Hamas to raise funds in bitcoin (BTC) and other cryptocurrencies. They were identified during a joint operation with the Ministry of Defense.
The publication adds that the stockpiles of cryptocurrency were being managed from the Gaza Strip, which is under the control of Hamas. The wallets were employed by the Palestinian organization in its efforts to collect money from foreign sources following the 11-day conflict with Israel in May. The seizure has affected the Al Qassam Brigades, Hamas’s military wing.
According to a blog post by blockchain forensics firm Chainalysis, the investigation focused largely on analysis of open-source intelligence such as social media posts and blockchain data. The blockchain analysis reveals the movement of donation funds to exchanges. Chainalysis published a graph showing bitcoin transactions carried out by addresses listed by the NBCTF, many of which have been attributed to individuals involved in donation campaigns.
“The orange hexagons represent deposit addresses hosted by a large, mainstream cryptocurrency exchange and controlled by individuals named in the NBCTF announcement,” explains Chainalysis. “On the graph, we see how funds moved to those exchange addresses from Hamas donation addresses, often passing first through intermediary wallets, high-risk cryptocurrency exchanges, and money services businesses (MSBs),” the company detailed.
According to the report, two addresses named in the announcement received funds from addresses associated with the Idlib office of Bitcoin Transfer, a Syrian cryptocurrency exchange connected to terrorism financing cases. A third address received funds from a Middle East-based MSB that had previously received funds from the Ibn Taymiyya Media Center (ITMC), another organization linked to terrorism financing.
Besides BTC, the ministry intercepted payments in ETH, XRP, USDT, and DOGE, the Times of Israel claims. The crypto cash has been seized in accordance with Israel’s Counter-Terrorism Law from 2016. In a statement released by the defense department, Benny Gantz was quoted as saying:
The intelligence, technological and legal tools that enable us to get our hands on terrorists’ money around the world constitute an operational breakthrough.
Seizure of Hamas’ Funds Proves Bitcoin Is ‘Safe’ Currency
According to Noa Mashiah, CEO of the Israeli Bitcoin Association, “the seizure and forfeiture of Hamas’s donations proves that Bitcoin is a safe currency.” He elaborated that “criminals who make use of this financial system will find out the hard way that the open transaction log, the blockchain, will expose them and allow law enforcement agencies to act against them.”
The executive said that the news of the confiscation marks “a significant improvement over the anti-money laundering ban and also over international bank accounts hidden behind a bank secrecy wall.” He insisted that the operation proves regulators in Israel should “adopt and use” bitcoin “as it makes it possible to expose the bad and do good with the good.”
“Once you go beyond the boundaries of the blockchain to the worlds of trading platforms, you immediately lose anonymity and then, as in the present case, states and law enforcement agencies are able to locate and freeze the currencies of criminal and terrorist organizations,” added Omri Segev Moyal, CEO of cybersecurity firm Profero. He also noted that “when the network is completely exposed, you can very accurately track the trajectory of the coins and locate their final destination.”
Hamas called on its supporters to send bitcoin in 2019, when the Islamist movement needed the money to deal with its financial problems. A few months later, the terrorist group established an experimental program to collect money via an elaborate system designed to facilitate international cryptocurrency donations.
What do you think about Israel’s seizure of cryptocurrency funds raised by Hamas? Share your thoughts on the subject in the comments section below.
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