According to documents from the country’s counter-terrorism officials, Israel has seized over 190 crypto accounts at the Binance exchange since 2021.
As per a Reuters report, the documents reveal that two accounts linked to Islamic State were among those confiscated. Dozens of other accounts were said to be owned by Palestinian firms allegedly connected to Hamas, the Islamist group that governs the Palestinian territory of Gaza.Â
Regulators worldwide have long called for tighter controls on crypto exchanges to prevent illegal activities, including money laundering and financing terrorism. The seizures by Israel’s National Bureau for Counter-Terror Financing underscore how governments are targeting crypto firms in their efforts to combat illegal activity.
The NBCTF document did not specify the value of the crypto seized or how the accounts were linked to Islamic State. The owner of the two accounts is named 28-year-old Palestinian Osama Abuobayda.
Binance was apparently used by two persons suspected by Germany of supporting an Islamist shooter who killed four people in Vienna in 2020. Nearly all of the accounts seized by Israel were owned by three Palestinian currency exchange firms designated as “terrorist organizations” by Israel for their alleged involvement in fund transfers by Hamas.
The NBCTF announced last month that it had confiscated cryptocurrency worth over $137,870 from over 80 Binance accounts connected to the three organizations. The document said the accounts were owned by “terrorist organizations” or used for a “severe terror crime.” A person with direct knowledge of Al Mutahadun, one of the firms, denied any involvement with crypto or Hamas.
Hamas has also denied any connection to the firms and said the allegations were an attempt by Israel to justify its economic war against Gaza and its people. Following an increase in “hostile” activity against donors, the group’s armed wing recently announced that it would no longer accept Bitcoin donations.
Also Read: CFTC Head accuses Binance of Intentionally Flouting Regulations
