Tron, a cryptocurrency platform, has emerged as the preferred platform for crypto transfers associated with designated terrorist organizations in Israel, surpassing Bitcoin, according to financial crime experts and blockchain investigations specialists [8a582885]. Israel's National Bureau for Counter Terror Financing (NBCTF) has frozen 143 Tron wallets believed to be connected to designated terrorist organizations or used for severe terror crimes. The value stored in these wallets and the legitimacy of the links to terrorist groups are currently unknown [8a582885].
This increase in Tron seizures reflects its faster transaction times, low fees, and stability. Terrorist groups such as Hamas, Hezbollah, and Palestinian Islamic Jihad are among the organizations linked to Tron wallets seized by Israel [8a582885].
Tron is also the dominant blockchain for Tether transactions, with $48 billion worth of tokens hosted on the platform. The popularity of Tron among terrorist organizations is attributed to its lower transaction fees and the use of stablecoins to preserve the value of their cryptocurrency [8a582885].
In contrast, Bitcoin seizures in Israel have been scarce compared to Tron. The Israeli government has previously seized assets from over 80 accounts on Binance, the world's largest crypto exchange. The government also froze around 600 accounts linked to a company called the Dubai Money Exchange, which is based in Gaza and designated as a terrorist organization [8a582885].
While Tron offers an alternative to Bitcoin for financing questionable activities, a spokesperson for Tron stated that all technology could be used for such activities [8a582885].
Israeli financial services firms are showing growing interest in blockchain, although mentions of blockchain in company filings are lower than in 2018 [8a582885].
