Israel Freezes Over 100 Binance Accounts Linked to Hamas

• Israel freezes more than 100 crypto accounts with suspected Hamas links.
• Binance confirms compliance with international sanctions.
• Tether freezes 32 addresses containing over $873,000 linked to “terrorism and warfare.”

Amid the ongoing war between Israel and Hamas, Israeli authorities are moving to cut Hamas funding from all sources. Most recently, authorities have frozen over 100 cryptocurrency accounts linked to Hamas. Binance, the world’s largest crypto exchange, confirmed complying with sanctions. 

Israel’s Crackdown on Hamas Crypto Accounts 

Since the onset of Hamas’s assault on October 7, Israeli law enforcement has been actively working to cut funding from Hamas. On Tuesday, October 17, reports surfaced that Israel has closed over 100 accounts on Binance, the world’s largest crypto exchange. 

Additionally, authorities have requested information on up to 200 more accounts, most of which are also held on Binance. The exchange has confirmed that it has “blocked” a “small number” of accounts and is in compliance with internationally recognized sanctions rules. 

The action comes in the wake of increased concerns about the role of lightly regulated crypto markets in facilitating illicit transactions. Moreover, these concerns have been exacerbated by the Israel-Hamas conflict. 

Binance is not the only crypto company that recently took action against Hamas. Tether, the company behind the biggest stablecoin, made a similar step. On Monday, Tether announced it had frozen 32 addresses containing more than $873,000 linked to “terrorism and warfare” in Israel and Ukraine. The company, however, did not disclose when these accounts were blocked or how the assets were divided between the two countries.

On the Flipside

• Despite ongoing crackdowns, Hamas has been moving away from using crypto for funding. In April, the Hamas military wing al-Qassam Brigades said they would suspend Bitcoin donations. Namely, the group was concerned with the transparent nature of blockchain transactions. 
• Crypto is not the only way Hamas gets their money. Notably, social media platforms have also been implicated in facilitating Hamas fundraising. 

Why This Matters

The actions taken by Israeli authorities and Binance could set a precedent for how crypto exchanges cooperate with governments in the future.

Read more about the role of crypto in Hamas funding: 
Unraveling Hamas Crypto Terror Financing in Israel-Gaza War

Read more about whether AI is taking the spotlight away from crypto: 
Chinese Tech Giant Meitu Abandons Crypto for AI