Israel orders freezing of crypto addresses! Seizes millions of dollars in assets, aims to cut off Hamas crypto funding.

The week-long bloodshed conflict between Hamas and Israel has led the Israeli authorities to order the closure of numerous cryptocurrency accounts and seizure of assets to prevent Hamas from continuing to receive economic aid through cryptocurrencies.

Israel Orders Freeze of Crypto Addresses to Disrupt Hamas Crypto Funding

According to the Financial Times, Israeli law enforcement has ordered the closure of dozens of cryptocurrency accounts and seized millions of dollars worth of cryptocurrencies in an effort to sever the connection between the crypto market and Hamas.

Sources revealed that since the attacks by Hamas on October 7th, Binance has closed over 100 accounts. Additionally, Israeli authorities have requested information on up to 200 additional crypto accounts, many of which are also from Binance.

In response, Tom Alexandrovich, Executive Director of the Israeli National Cyber Directorate, stated:

"During times of conflict, cryptocurrency is a major concern for financing terrorism as there are no other options. The amount of cryptocurrency funding has increased significantly since the attacks began."

Furthermore, Tether, the issuer of USDT, stated on Monday that they have frozen 32 addresses worth $873,118.34, which were found to be associated with illegal activities in Israel and Ukraine.

Did Binance Know About Hamas-Related Transactions Early On?

Back in March this year, Binance and its CEO CZ were sued by the CFTC (Commodity Futures Trading Commission) for allegedly violating trading and derivatives regulations. The lawsuit mentioned that Binance employees were aware of "Hamas-related transactions," with employees even explaining that terrorists typically send small amounts of funds because large amounts could be considered money laundering.

However, the content of the lawsuit against Binance is contentious, and the legal battle is ongoing.

Additionally, the Financial Times reported that a person familiar with Binance's sanctions and compliance procedures has requested information on "hundreds" of accounts from Binance.

Due to Binance's larger scale compared to the past, whenever Hamas announces new crypto donation addresses, Binance must go back to all users who have interacted with that address.