Israeli Agencies Unearth Massive Tron Wallets Linked to Militant Financing

Amid Israel’s ongoing fight against militant groups such as Hamas and Hezbollah, security agencies have unearthed a new link of terror organizations using the fast-growing Tron network. Another possible reason behind the same is the Tron network attracting less scrutiny than Bitcoin.

Favouring Tron Over Bitcoin

Surpassing Bitcoin in speed and cost-effectiveness, the Tron network has become the preferred platform for crypto transfers associated with groups labeled as terrorist organizations by various nations, including Israel and the United States. Interviews with seven financial crime experts and blockchain investigations specialists reveal this shift in preference.

A Reuters analysis of crypto seizures announced by Israeli security services since 2021 corroborates this trend, indicating a notable increase in the targeting of Tron wallets and a simultaneous decline in Bitcoin wallet seizures.

Mriganka Pattnaik, the CEO of New York-based blockchain analysis firm Merkle Science, notes this transition, stating that terrorist organizations are increasingly favoring Tron over Bitcoin. He attributes this shift to Tron’s faster transaction times, lower fees, and enhanced stability. Merkle Science boasts law enforcement agencies from the United States, Britain, and Singapore among its clients.

Israel’s National Bureau for Counter Terror Financing (NBCTF), responsible for such seizures, froze 143 Tron wallets between July 2021 and October 2023, believing them to be linked to a “designated terrorist organization” or used for a “severe terror crime,” according to the Reuters analysis.

Seizing Massive Number of Crypto Wallets

Of Israel’s Tron seizures, 87 occurred this year, including 39 wallets linked to Lebanon’s Hezbollah and 26 wallets associated with Palestinian Islamic Jihad. The seizures also encompassed 56 Tron wallets connected to Hamas, with 46 linked to a Gaza-based money exchange company named Dubai Co. For Exchange in March last year, as per the Reuters report.

Following the Hamas assault, Israel made its most significant known seizure of crypto accounts, freezing approximately 600 accounts associated with Dubai Co., without specifying the crypto networks or coins used.

Individuals affected by the seizure, using Tron, denied any ties to Hamas or Islamic Jihad, stating that they engaged in crypto trading for business or personal finances. One individual mentioned the possibility of a one-time money transfer to someone associated with Hamas.

The armed wing of Hamas, which had previously raised crypto funds, announced in April that it would cease Bitcoin fundraising, without mentioning Tron in the statement.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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