Israel has frozen several crypto wallets linked to the Palestinian militant group Hamas, according to local reports this week. The crackdown coincides with rapidly intensifying violence in the Gaza conflict.
The Israel cyber police unit collaborated with the country’s Ministry of Defense, Shin Bet intelligence, and cryptocurrency exchange Binance to locate and freeze Hamas crypto wallets used for fundraising.
Israel froze crypto accounts with the help of Binance
By partnering directly with Binance, Israel halted the accounts to prevent further accumulation of funds by the political faction.
The Israeli police statement reads, “According to suspicions, with the outbreak of the war, Hamas’s terrorist organization initiated a fundraising campaign on social networks, urging the public to deposit cryptocurrencies into their accounts.”
Back in March, the U.S. Commodity Futures Trading Commission accused Binance of enabling illicit transactions tied to Hamas on its platform. The allegations underscore the challenges exchanges face in combating “terror financing,” even with sophisticated blockchain surveillance tools.
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While crypto offers efficiency for cross-border transactions, its transparency also aids monitoring by authorities once account links are uncovered. But curbing Hamas’ broader funding channels will likely require sustained coordination between intelligence agencies, exchanges, and banks across multiple jurisdictions.