Israel orders Hamas-linked crypto wallets to be frozen: Report

Bitcoin and Ether can be sent from all over the world through centralised or decentralised exchanges [File]
| Photo Credit: REUTERS

The Israeli government has ordered cryptocurrency wallets associated with the Hamas militant group to be frozen in order to cut off their blockchain-based funds, reported analytics platform Elliptic on Tuesday, citing a Hebrew language news source.

The news outlet claimed that Hamas had earlier asked on social media for people to donate cryptocurrency to support its efforts.

Blockchain-based currencies such as Bitcoin and Ether can be sent from all over the world through centralised or decentralised exchanges. Those who send funds to terrorist groups are often difficult to identify due to the anonymous nature of crypto wallets.

Elliptic reported that Hamas had indeed solicited crypto donations when it was attacking Israel in the past, but this was a very small percentage of its funds. While the group had collected thousands of dollars in crypto donations between 2019 and 2022, according to Elliptic statistics, Hamas itself announced in April this year it would stop taking crypto donations, claiming that its donors were being harmed. This came after efforts by Israel and the U.S. to cut off the group’s crypto funding.

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Following Hamas’ attack on October 7, Israel has bombarded Gaza with airstrikes and cut off food, water, and electricity to Palestinian civilians as it pressures Hamas to return the Israeli civilians it took hostage. More than 1,000 people have been killed on both sides and Palestinians were also ordered to evacuate to the southern part of Gaza as Israel potentially prepares for a ground operation.