Israel confiscates Binance cryptocurrency accounts

05.05.2023

Israel confiscated about 190 cryptocurrency accounts from the cryptocurrency exchange Binance since 2021, including two that it believed were linked to the Islamic State and dozens of others that it believed belonged to Palestinian firms affiliated with the Islamist group Hamas.

Israel’s National Counter Terrorist Financing Bureau (NBCTF) confiscated two Binance accounts and their contents on Jan. 12, according to a document on the NBCTF website. The confiscation was made to “thwart the activities” of the Islamic State and undermine its ability to achieve its goals.

Under Israeli law, the country’s defense minister can order the seizure and confiscation of assets that the ministry believes are linked to terrorism.

Regulators around the world have long called for stricter controls on cryptocurrency exchanges to prevent illegal activity, from money laundering to terrorist financing. The seizures made by Israel’s NBCTF show how governments are targeting cryptocurrency companies in their efforts to prevent illegal activity.