Israeli law enforcement collaborated with cryptocurrency companies to block fund flows to Hamas, report says
Israeli authorities have ordered the closure of dozens of cryptocurrency accounts following the October 7 attack by Hamas, the Financial Times reported on Tuesday.
More than 100 accounts on the world's largest cryptocurrency exchange, Binance, have been frozen, the newspaper said, adding that authorities have requested information on some 200 other accounts.
"We are deeply saddened by the events in the Middle East," Binance said in a statement sent to Euronews Next, adding that a "small number of accounts" had been blocked.
On Monday, the world's largest stablecoin issuer, Tether, announced it had frozen 32 cryptocurrency wallets linked to "terrorism and war" in Israel and Ukraine.
Tether said the wallet addresses had a combined value of more than €827,000 and that it was working with Israel's National Bureau for Combating Terrorist Financing.
Cryptocurrency companies freeze accounts to block Hamas funding
Israeli law enforcement collaborated with cryptocurrency companies to block fund flows to Hamas, report says
Israeli authorities have ordered the closure of dozens of cryptocurrency accounts following the October 7 attack by Hamas, the Financial Times reported on Tuesday.
More than 100 accounts on the world's largest cryptocurrency exchange, Binance, have been frozen, the newspaper said, adding that authorities have requested information on some 200 other accounts.
"We are deeply saddened by the events in the Middle East," Binance said in a statement sent to Euronews Next, adding that a "small number of accounts" had been blocked.
“As always, Binance follows internationally recognized sanctions rules, blocking a small number of accounts linked to illicit funds.”
"We wish for a rapid and peaceful end to the conflict and the safety of all innocent civilians," the company also said.
On Monday, the world's largest stablecoin issuer, Tether, announced that it had frozen 32 cryptocurrency wallets linked to "terrorism and war" in Israel and Ukraine.
Tether said the wallet addresses had a combined value of more than €827,000 and that it was working with Israel's National Bureau for Combating Terrorist Financing.
Meanwhile, Israeli police said on October 10 that they had frozen cryptocurrency company accounts used to make donations to Hamas, an Islamist political and military organization designated a terrorist group by the United States, the European Union and many other countries.
As Hamas is a designated terrorist entity, it is subject to sanctions and exclusions from international banking systems, making cryptocurrencies an attractive alternative as they operate primarily outside of traditional banking systems and allow pseudonyms.
Between August 2021 and June 2023, Hamas received €39 million in cryptocurrencies, according to cryptocurrency software and analytics company BitOK.
But Tether's new CEO, Paolo Ardoino, noted that "contrary to popular belief, cryptocurrency transactions are not anonymous. They are the most traceable and tracked assets."
"Every transaction is recorded on the blockchain, allowing anyone to trace the movement of funds. Therefore, criminals foolish enough to use cryptocurrencies for illegal activities will inevitably be identified," he explains in a statement.
