Israeli Cyber Unit Halts Hamas Crypto Fundraising

The Jerusalem Post reports that the Israeli police cyber unit has suspended cryptocurrency accounts used by Hamas to solicit donations via social media.

This action is part of a more significant effort to restrict the flow of funds into the terrorist organization’s hands, particularly during periods of conflict.

Hamas initiated an online fundraising campaign with the outbreak of the recent conflict, encouraging the public to deposit cryptocurrencies into its accounts, according to the cyber unit’s investigation. These funds were most likely allocated to support its operations.

Together with the National Headquarters for Economic Warfare, the Israeli police cyber unit promptly located and froze these cryptocurrency accounts.

Authorities requested that Binance facilitate the transfer of seized funds to the state treasury.

The Israeli cyber unit, Lahav 433, collaborated closely with the British police to block a Barclays Bank account.

The unit’s efforts extend beyond this operation, seeking terrorist groups’ cryptocurrency-based financial infrastructures.

Israel’s crypto and Web3 communities have joined forces to create “Crypto Aid Israel” in response to the ongoing conflict in the region.

This initiative seeks to raise funds for Israeli citizens who have been displaced and need humanitarian assistance due to the escalating conflict with Hamas.

Crypto Aid Israel has established a multi-signature wallet, jointly controlled by multiple parties, to receive donations denominated in Bitcoin (BTC), Ethereum (ETH), and dollar-pegged stablecoins such as USDT and USDC.

Several Israeli banks and regulators have also intervened to facilitate the flow of these crypto donations, potentially bridging crypto assets and traditional banking channels.

To guarantee the secure administration of these cryptocurrency assets, the initiative has enlisted the services of Fireblocks, a firm specializing in crypto storage.

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

The alliance supporting Crypto Aid Israel comprises notable organizations such as Fireblocks, MarketAcross, Collider Ventures, CryptoJungle, and the Israel Blockchain Association.