It was found that three armed groups, including Palestine’s Hamas and Islamic Jihad (PIJ), and Lebanon’s Hezbollah, have raised over 130 billion won in funds through virtual currency in the past year.
On the 10th (local time), the U.S. Wall Street Journal (WSJ) reported this based on the Israeli government’s seizure of Hamas-related items and a report by a virtual currency analysis company. According to a report by virtual currency tracking company Elliptic, a total of $93 million (about 125 billion won) was deposited into accounts believed to be linked to PIJ from August 2021 to June this year. Another virtual currency analysis company, BitOK, also estimated that about $41 million (approximately 55 billion won) was transferred to accounts linked to Hamas during the same period. It has not been confirmed whether funds received by Hamas in the form of virtual currency were used in this surprise attack on Israel.
These armed groups appear to have used virtual currency to raise funds as their access to the international financial system is limited. Armed organizations have also exchanged funds in virtual currency, such as PIJ sending at least $12 million (approximately KRW 16.3 billion) to Hezbollah’s virtual account since 2021.
An Elliptic official said, “Hamas sometimes brings cash directly from Egypt to the Gaza Strip, and using virtual currency is much easier than smuggling cash across the border.” In a report last year, the U.S. Treasury pointed out that terrorists could misuse virtual currency exchanges due to a gap in financial crime control, and that Islamic State (IS) and al-Qaeda, extremist Islamic militant groups, also received donations in virtual currency.
Israeli counter-terrorism authorities are working with Binance, the world’s largest exchange, to seize and freeze virtual currency in 67 accounts suspected of being linked to PIJ.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.