Israeli authorities have successfully seized crypto wallets containing millions of dollars intended to fund terrorism, as announced by the country’s National Bureau for Counter Terrorist Financing on June 28. This operation, which involved collaboration between the Israeli Ministries of Defense and Justice, various intelligence agencies, and Chainalysis, marks the largest seizure of cryptocurrency from terrorist organizations Hezbollah and the Iranian Quds Force.
Israeli Defense Minister Yoav Gallant praised the joint effort and credited the operation’s success to the integration of new technology into their counter-terrorism measures. During a conference on June 27, Gallant highlighted the significant achievements made possible by the newly developed capabilities at the National Bureau for Counter Terror Financing. The operation effectively disrupted the flow of terror funds, cutting off their access to crypto channels.
Hezbollah, Quds, and Syrian elements were found to be utilizing cryptocurrencies to obtain funds from third-party sources, particularly money changers involved in illicit transactions. In collaboration with intelligence and enforcement entities, Israeli authorities employed innovative techniques to trace and seize these funds.
Blockchain analytics firm Chainalysis, in a blog post, confirmed their involvement in the operation and revealed that $1.7 million had been seized by Israeli authorities. They expressed pride in contributing to this landmark national security achievement.
This operation builds upon previous efforts to combat crypto financing of terrorism. In April, Palestinian Sunni organization Hamas announced its decision to no longer accept cryptocurrency donations due to concerns about donor safety amidst increasing hostility. Since 2021, Israel has already seized approximately 190 accounts on Binance associated with the Islamic State and Hamas. However, Binance criticized Reuters’ coverage of the seizures for omitting crucial details in their report.
Overall, the successful seizure of cryptocurrency from terror organizations demonstrates Israel’s commitment to preventing the misuse of digital assets for illicit purposes. This operation highlights the importance of collaboration between government agencies, intelligence entities, and technology firms in combating terrorism financing.