- ISIS received crypto donations and exchanged them for cash on crypto trading platforms
- All 189 Binance accounts seized by Israel were held by Palestinian companies
Israel’s National Bureau for Counter Terror Financing (NBCTF) has seized almost 200 crypto accounts at Binance in the past two years, including two allegedly connected to ISIS and Hamas, Reuters reported, citing documents released by the Israeli authorities.
On its website, the NBCTF claimed the operation was to “thwart the activity” of ISIS. No further details were provided.
Did ISIS get crypto donations?
ISIS, or the Islamic State of Iraq and Syria, emerged in Syria and reached its peak in 2014. At the time, it controlled a third of the two countries’ territories. It has since been forced underground, but its members continue to wage insurgent attacks.
In a 2022 report, the US Treasury said ISIS received crypto donations and exchanged them for cash on crypto trading platforms it did not name.
The two ISIS-linked accounts seized by Israel belonged to Osama Abuobayda, a 28-year-old Palestinian. He did not comment.
Binance denies all allegations
According to Binance’s website, the crypto exchange reviews information requests from regulators and law enforcement bureaus on a case-by-case basis and operations in full compliance with the law.
In 2022, Reuters reported that in the past five years, Binance had processed more than $10 billion in payments for companies and criminal entities aiming to evade US sanctions. Binance called the information inaccurate and protested Reuters’ “outdated” descriptions of its compliance mechanisms.
Accounts held by terrorists?
Israel has seized 189 Binance accounts since the end of 2021, all of which are held by Palestinian currency exchange companies. Three of them are deemed to be “terrorist organizations” by Israeli authorities. Allegedly, they were used by Hamas to transfer funds. Hamas controls the Palestinian territory of Gaza.
The three companies – Al Mutahadun, Dubai Company, and Al Wefaq Co. – are based in Gaza. Reportedly, the NBCTF seized crypto worth around $140,000 (500,000 shekels) from dozens of accounts held by these companies.
An insider told Reuters Al Mutahadun had never worked with crypto and had no connection to Hamas. It was merely a “money exchange company” and the allegations were false.
Recently, Hamas’ military faction announced it was no longer accepting donations in bitcoin after its donors experienced increased hostility.
Binance faces willful evasion charges
The crypto exchange, its founder and CEO Changpeng Zhao, and ex-compliance head Samuel Lim have been charged with evading US commodity laws by the US Commodity Futures Trading Commission (CFTC).