As Jewish News Syndicate reported, the Tel Aviv Magistrate’s Court granted permission to the Israeli government last week. Before the decision, the government could only seize cryptocurrencies directly used in financing terrorist activity and not “additional funds in the same wallets.”

Israeli Government Plans to Seize Additional Funds From 150 Terrorist-Linked Wallets

However, upon the new directive, the Israeli government plans to seize additional funds from more than 150 blacklisted digital wallets used in funding terrorists, according to the defence minister. Gantz revealed that since the court’s ruling, the government has confiscated an additional $33,500 in cryptocurrencies from blacklisted wallets linked to the Hamas militant movement.

In recent years, several terrorist organisations have turned to cryptocurrencies to receive funding from supporters worldwide. Notably, in 2019, the Hamas group started soliciting funds from supporters in Bitcoin through cryptocurrency exchanges like Coinbase, according to Globes.

Regulators Intercept Terrorism Funding in Crypto

However, Israeli regulators have been active in policing these schemes. According to Jewish News Syndicate, the Israeli government has made at least three seizures of cryptocurrencies used in funding terrorism this year. In 2021, the government confiscated around $750,000 from terrorist-linked wallets.

United States regulators are not left out in the fight against crypto terrorist funding. In August 2020, the US Justice Department also intercepted a cyber campaign by three notorious terrorist groups — al-Qassam Brigades, Hamas’ military wing, and ISIS — to raise funds through cryptocurrencies and social media. Additionally, the agency confiscated about $2 million from over 300 cryptocurrency accounts involved in the campaign.

Terrorist financing using cryptocurrencies has been one major concern regulators have on emerging assets. This is primarily due to cryptocurrencies’ inherent anonymous property, making them hard to trace compared to traditional payment mediums.

(By Ibiam Wayas)