In response to a request from Israeli authorities, Binance, the world’s largest cryptocurrency exchange, has frozen over 100 accounts suspected of being connected to the Palestinian militant group Hamas. This action comes in the wake of escalating tensions in the region following an attack on Israel by Hamas on October 7.
According to a report from the Financial Times, Israeli police have also sought information on an additional 200 cryptocurrency accounts, most of which are on Binance. These accounts are under scrutiny as part of an ongoing investigation into their potential use for fundraising by Hamas.
Last Tuesday, the cyber unit of Israel Police announced that it had frozen several crypto accounts allegedly used by Hamas to raise funds. The authorities claim that Hamas launched a crypto fundraising campaign shortly after the conflict began.
The situation has led to a broader financial response within Israel. Last Monday, Israeli crypto firms established an emergency fund to support citizens affected by the ongoing conflict.
However, this move by Binance has raised significant concerns about the security and neutrality of using the platform. Many users are now calling for a boycott of Binance, questioning the security implications of a foreign government being able to freeze the funds of individuals under its occupation. This situation also challenges the decentralized nature of cryptocurrency, as the involvement of state authorities in halting transactions contradicts the fundamental principles of decentralized finance.
Despite these measures, there is currently no concrete evidence linking the frozen accounts directly to Hamas or any other militant organizations, as claimed by Israeli authorities. Some of the accounts were reportedly raising funds to aid victims of the conflict in Gaza, and the freezing of the funds is just another way to ensure the people of Gaza suffer as Israeli aggression continues in the Gaza Strip.
