On Monday, Israeli defense minister Beni Gantz ordered the seizure of crypto assets from accounts believed to be used to fund Hamas, according to sources.
The accounts were linked to a corporation claimed to have cooperated with Hamas finance, according to a statement from Israel's National Bureau for Counter Terrorism Financing.
Officials claim the assets under the seizure order include "tens of thousands of shekels" from 12 accounts and roughly 30 digital wallets that belonged to businesses that assisted the Al'matchadun currency exchange company, which belonged to the Shamlach family.
According to the statement, the family personally owned a portion of the seized cryptocurrencies. Names and email addresses linked with the 12 accounts are shown in the order.
In the same news statement, Gantz stated that he was "acting in every imaginable manner to shut off Terror's economic oxygen line."
The Israeli government has been pushing down on Hamas' use of cryptocurrency. According to blockchain analytics and forensics firm Elliptic, Gantz ordered the seizure of 84 addresses that had received $7.7 million in cryptocurrencies in July 2021. In December, assets belonging to 47 users were also confiscated.
A senior Hamas official who spoke to The Wall Street Journal in June and said that bitcoin donations to Hamas increased after the Israeli – Palestinian conflict worsened last year.
The US, along with the European Union, Israel, and other countries, considers Hamas to be a terrorist organization.
US authorities stated in August 2020 that they had seized roughly 300 bitcoin addresses as part of an operation targeting terrorism financing networks, including one tied to Hamas.