Israeli Authorities Freeze Crypto Donation Accounts Linked to Hamas

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Jai Pratap

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Jai Pratap

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Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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October 23, 2023 04:30 EDT

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The Israeli police cyber unit have frozen cryptocurrency accounts used by Hamas to raise donations via social media, Jerusalem Post reported. 

This action comes as part of a broader effort to curb the flow of funds into the hands of the terrorist organization, especially during times of conflict.

The cyber unit’s investigation revealed that Hamas had initiated an online fundraising campaign with the outbreak of the recent conflict, urging the public to deposit cryptocurrencies into its accounts. These funds were likely intended to support its activities. 

יחידת הסייבר בלהב 433 הקפיאה חשבונות של מטבעות קריפטוגרפיים, אשר שימשו את החמאס לגיוס תרומות ברשתות חברתיות pic.twitter.com/lsBwfduNgE

— משטרת ישראל (@IL_police) October 10, 2023

The Israeli police cyber unit, in collaboration with the National Headquarters for Economic Warfare, swiftly located and froze these cryptocurrency accounts. 

Authorities asked Binance to facilitate the process of withdrawing the seized funds into the state treasury.

The Israeli cyber unit, known as Lahav 433, also worked closely with the UK police to freeze an account held at Barclays Bank.

The unit’s efforts extend beyond this operation, as it continues to actively search for financial infrastructures in cryptocurrencies used by terrorist elements.

Web3 Community Launches Crypto Aid Israel

Amid the ongoing conflict in Israel, the country’s crypto and Web3 communities have come together to establish “Crypto Aid Israel.” 

This initiative aims to raise funds to support Israeli citizens who have been displaced and are in need of humanitarian aid due to the escalating conflict with Hamas.

Crypto Aid Israel has set up a multi-signature wallet, controlled jointly by multiple parties, to accept donations denominated in various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and dollar-linked stablecoins such as USDT and USDC. 

Several Israeli banks and regulators have also stepped in to facilitate the flow of these crypto donations, potentially providing a bridge between crypto assets and traditional banking channels.

To ensure the secure management of these cryptocurrency assets, the initiative has enlisted the expertise of Fireblocks, a specialized crypto safekeeping firm. 

They have implemented a strict policy that mandates the consensus of at least four out of seven signatories to authorize the movement of funds out of the wallet, ensuring a secure and transparent process.

Members of the alliance supporting Crypto Aid Israel include prominent entities like Fireblocks, MarketAcross, Collider Ventures, CryptoJungle, and the Israel Blockchain Association.