Israel Court Green-lights Funds Seizure from 150 Blacklisted Crypto Wallets  

• Authorities in Israel have seized more than $750,000. 
• The number of blacklisted wallets increased from 30 to 150 wallets.   

According to the Jewish News Syndicate, an Israeli court has permitted the government to seize crypto stored in over 150 digital wallets that were blacklisted for allegedly funding terrorist groups. 

Israeli media reported on December 18 that Defense Minister Benny Gantz said that the Tel Aviv Magistrate Court has already permitted the government to seize $33,500 from blacklisted digital wallets connected to the Islamist militant group Hamas. 

Israeli authorities seized $750,000 from the blacklisted wallets but were not allowed to seize additional funds present in these suspicious wallets. 

As of March 2022, Israeli officials seized 30 cryptocurrency wallets from 12 exchange accounts related to Hamas, a militant organization based in the Gaza Strip, on Monday. Israel claimed that Hamas leaders were using 12 accounts held by crypto exchange al-Mutahadunwere to fund terrorist attacks against the country. 

According to the Times of Israel, Israel’s Defense Ministry said al-Mutahadun had aided Hamas’ military wing by transmitting finances worth tens of millions of dollars yearly.

Although the exact sum of the seizures and whose crypto assets were taken are unknown, Israeli officials think Hamas used tens of millions of dollars in cryptocurrency to pay its military.

Hamas had accepted bitcoin donations since the beginning of 2019 when economic sanctions began severely affecting the group’s capacity to operate.

The wallets were seized with the help of Israel’s National Bureau for Counter-Terrorist Financing (NBCTF). In July 2021, the NBCTF carried out a similar seizure of Hamas crypto monies, seizing wallets including Tether (USDT), Ether (ETH), Dogecoin (DOGE), XRP, Zcash (ZEC), Litecoin (LTC), and other assets.

Chief Economist Shira Greenberg works with the Israel Ministry of Finance. She submitted a detailed 109-page report on November 28 to the Minister of Finance on how to adopt crypto – safely – in the country.  

Greenberg noted, “The regulation processes are being formulated and determined during this period in various countries in the Western world and it is recommended that the state of Israel will act in accordance with the emerging standards in the developed world.”

Removing the barriers that exist under the existing regulatory framework:- clarifying the government policy concerning increasing the number of investors in the field, among other things, by deciding the existing licensing and continuing to monitor the implementation of measures to ensure the provision of adequate banking services, under risk management as required for funds derived from digital assets.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Latest posts by Steve Anderrson (see all)