US and Israeli authorities have intensified their efforts to crack down on cryptocurrency donations to Hamas, a Palestinian militant group. In April, Hamas announced that it would no longer accept crypto donations due to the increased ability of law enforcement to trace and track these transactions. Despite this claim, supporters of the group continue to raise funds in cryptocurrency. The crackdown on crypto donations comes as part of a broader effort to track the financial flows from Iran to Hamas, with the focus now on identifying and seizing funds. In 2020, US law enforcement seized 150 cryptocurrency wallet addresses associated with Hamas and shut down the websites used for fundraising. While cryptocurrency can be used for illicit purposes, its transparency also makes it easier for authorities to identify and seize funds [e613c751] [4d499cb8].
The recent freezing of several cryptocurrency accounts associated with Hamas by Israeli police, with the assistance of Binance, has shed light on the role of cryptocurrency in Hamas's terrorist financing. Over 150 cryptocurrency accounts, wallets, and addresses that received donations from Hamas supporters worldwide were seized, revealing that Hamas had raised tens of millions of dollars through this scheme. Cryptocurrency provides a means for Hamas to receive and transfer funds anonymously, allowing them to bypass banking systems and international sanctions. However, it is important to note that cryptocurrency is not the sole source of Hamas's financial support. The group also relies on traditional methods such as cash smuggling and money laundering. Furthermore, the use of cryptocurrency by Hamas is not unique, as other terrorist organizations have also exploited this technology for their financing needs. While addressing the risks associated with cryptocurrency in terrorist financing is important, it is crucial to recognize that the problem extends beyond this digital currency [4d499cb8] [221704a4].
In addition to the crackdown on crypto donations to Hamas, scammers are taking advantage of the Israel-Hamas war to collect donations through fake cryptocurrency wallet addresses posing as legitimate charities. Social media accounts on platforms like Twitter, Telegram, and Instagram are enticing people to make humanitarian donations, but these accounts have dubious origins and are likely scams. Similar suspicious accounts claiming to support Israel and Israeli victims are also circulating. Researchers have identified over 500 scam emails and fraudulent websites designed to exploit people's willingness to help. The websites accept various cryptocurrencies like Bitcoin, Ethereum, Tether, and Litecoin. To avoid falling for scams, viewers are advised to thoroughly scrutinize donation pages, ensuring they provide essential information about the charity organizers and recipients, legitimacy documentation, and transparency regarding fund usage. The US Federal Trade Commission recommends researching organizations seeking donations, checking for complaints or reviews, and verifying the charity with reputable sources [ab5a970e].
Israeli officials have reported a 70% increase in donations made to Hamas-related charities since October 7. The funds are said to be reaching Hamas through three main channels: direct support from Iran, the informal Islamic banking system known as Hawala, and cryptocurrency. While some funds are intended for humanitarian needs in Gaza, Israel claims that a significant portion is diverted for military purposes by Hamas. The report comes in response to an article in The Wall Street Journal alleging that Hamas raised over $130 million in cryptocurrency between August 2021 and June 2022. The recent $4.3 billion settlement between Binance and U.S. authorities also highlights allegations of failure to prevent and report suspicious transactions with terrorist groups like Hamas. Israeli officials, along with over 100 members of Congress, have urged the White House and Treasury Department to crack down on cryptocurrencies due to their alleged use in funding Hamas operations [ab07665e].
Israel's intelligence service, Mossad, has been accused of using cryptocurrency to recruit spies in Turkey and track down and kidnap Palestinians living in the country. Turkish authorities have detained 34 people linked to Mossad following raids across the country. The suspects were allegedly involved in reconnaissance, surveillance, assault, and kidnapping operations on behalf of Mossad. Recruits were reportedly paid by Mossad through intermediaries, live couriers, and cryptocurrency to avoid traceability. Job listings were posted online to recruit individuals to assist Israeli agents. Tensions between Turkey and Israel have escalated following the war in Gaza, with Turkish President Recep Tayyip Erdoğan warning that Israel will pay a heavy price if it attempts to assassinate Hamas members in Turkey. The accusation of Israeli espionage in Turkey has raised concerns of a greater conflict in the Middle East [9773cc9d].