Combating Hamas Financing: Israel Closes Over 100 Crypto Accounts on Binance

Israeli authorities have taken decisive action by closing over 100 cryptocurrency accounts on the popular Binance exchange to curb the financing of the Islamist group Hamas. They are also responding to social media posts encouraging “donations” through crypto platforms.

Israeli authorities made the decision to close cryptocurrency accounts following Hamas’s attack on the country’s south on October 7, as reported by the Financial Times. More than 100 accounts on Binance were shut down, and requests for information on about two hundred more accounts were made.

Binance expressed regret over the events in the Middle East and expressed support for a peaceful resolution of the conflict. They also emphasized compliance with international sanction rules and the blocking of a “small number of crypto accounts” associated with illegal financing.

Tether, the company that froze 32 cryptocurrency wallets, claims to be cooperating with Israel’s National Bureau for Counterterrorism Financing (NBCTF).

The Israeli police have also taken action by freezing cryptocurrency accounts used for donations to Hamas, a terrorist organization that effectively governs the Gaza Strip. This became possible due to sanctions and the group’s exclusion from international banking systems.

Cryptocurrencies have become an attractive alternative for Hamas as they can bypass traditional banking systems and use pseudonyms. However, according to Tether’s CEO, cryptocurrency transactions are not anonymous. Each transaction is recorded in the blockchain, enabling tracking of fund movements and the identification of criminals.