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Israel: Authorities capture 30 crypto wallets linked to terror funding

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Israeli enforcement agencies have confiscated nearly 30 cryptocurrency wallets from 12 accounts, allegedly used to fund Hamas which has since been declared a terror group. As per local sources, Defense Minister Benny Gantz had approved the seizure owned by a crypto exchange based in the Gaza Strip.

According to the ministry, the trading platform which goes by the name Mutahadun is run by the Shamlah family who the former accused of assisting the Hamas terror group, and especially its military wing, by transferring funds amounting to tens of millions of dollars a year.

On previous occasions, funds linked to the Shamlah family have been targeted several times by Israeli authorities. The seized cryptocurrencies are believed to be worth several thousand shekels and were successfully captured in a joint effort led by the Defense Ministry, police, and military.

Further, Gantz in a statement reiterated,

“We continue to expand our tools to deal with terrorism, and with companies that supply it with an economic oxygen pipeline. I would like to congratulate all the organizations on their intelligence, operational and legal cooperation. We will continue to work together, in order to fight terror by any means and in any way.”

Earlier in 2019, Hamas had appealed for crypto donations from supporters to help tide over its financial crisis. Following this, it launched an experimental program using a complex cryptocurrency system to raise money. The group’s financial trouble has escalated in recent times as banks have distanced themselves from any dealings with the organization.

Israeli agencies remain extra vigilant amidst global crackdown

Recently, Israel’s National Bureau recovered an undisclosed amount in a counter-terror financing case linked to terrorism financing. Other similar cases around the world include a $56 million seizure by the US Department of Justice [DOJ] in a cryptocurrency scam investigation and the capture of another $2.3 million from the ransomware group behind the Colonial Pipeline attack.

The DOJ announced on Thursday, Feb. 17, that the Federal Bureau of Investigation [FBI] is building a new specialized team dedicated to tackling increased crimes related to crypto. One of the major takeaways has been announcing an international virtual currency initiative that will be established to facilitate joint global law enforcement collaboration.

Bitcoin is once again in the spotlight of the US government as a $1 billion crypto gets seized from the “Silk Road”

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Bitcoin has been associated with multiple underground networks since its inception and has become the pariah of law enforcement agencies. The Silk Road, an illegal marketplace dealing with multiple substances, is one of the biggest scandals associated with Bitcoin.

Since the arrest of Silk Road founder Ross Ulbricht in 2013, the dealings on the network has been very low-key. All that changed on November 5, when the United States Justice Department seized over $1 billion worth of Bitcoin via Silk Road connections. 

According to the latest reports, the Justice Department was filing documents to seek forfeiture of the seized Bitcoin. The Department revealed that the capital was found in the possession of an unnamed hacker who had stolen the cryptocurrency from a dark web address. This Bitcoin capture came at a time when the world’s largest cryptocurrency was heading towards its all-time high at a rapid pace.

This was not the first time that the government has seized large quantities of cryptocurrencies as the database shows a repertoire of different cases. In earlier scenarios, the government had auctioned off all the cryptocurrencies involved in seizures. Officials from the Department of Justice stated that they would first need to prove in court that the Bitcoin worth $1 billion is subject to forfeiture.

The Justice Department made the case transparent via a statement that addressed the 70,000 stolen Bitcoin. The other cryptocurrencies involved in the transfer included Bitcoin Gold, Bitcoin SV and Bitcoin Cash. The proceedings involved US Attorney David Anderson who gave his two cents on the situation. In his words:

“Silk Road was the most notorious online criminal marketplace of its day. The successful prosecution of Silk Road’s founder in 2015 left open a billion-dollar question. Where did the money go? Today’s forfeiture complaint answers this open question at least in part. $1 billion of these criminal proceeds are now in the United States’ possession.”

As of now, the public only knows the hacker as Individual X with future proceedings expected to yield more information. Information about cryptocurrencies and blockchain technology has now become widespread with government agencies learning every day. Only time will tell how well the mainstream world and the virtual asset world will integrate with one another.