
Over the weekend, Hamas hit Israel with severe attacks from Gaza, marking one of the most severe escalations in the Israeli-Palestinian conflict. The massive attack has made it difficult for many to figure out the source of funding for the surprise operation. The Israeli government's investigation into seizure operations and blockchain analytics reports has shed light on the flow of substantial sums to three militant groups: Hamas, Palestinian Islamic Jihad, and their Lebanese ally, Hezbollah. Between August 2021 and June of this year, the digital currency wallets connected to Palestinian Islamic Jihad took in $93 million in cryptocurrency, according to a WSJ report. A comprehensive analysis by renowned crypto researcher Elliptic was utilized to generate the report.
An Indian crypto heist investigation yielded startling results. A complainant reported the transaction of Bitcoin, Ethereum, and Bitcoin cash worth about 30 lakhs from their cryptocurrency wallet. The case was originally registered on PS-Paschim Vihar and was transferred to the Cyber Crime Unit, Special Cell, Delhi, upon the orders of the Hon'ble Court.
A cryptocurrency trail led to unexpected discoveries during the investigation. The cryptocurrencies were eventually found in wallets associated with the al-Qassam Brigades, the military wing of Hamas, and the wallets that had already been seized by Israel's National Bureau for counter-terrorism financing. One of the seized wallets belonging to Mohammad Naseer Ibrahim Abdulla, his wife, was seized by the AK-47 terrorist group.
Other wallets, where a significant part of the cryptocurrencies had been transferred, were found to be operated from Giza, Egypt. One such wallet was belonging to Ahmed Marzooq, a resident of Giza, Egypt, while another wallet was belonging to Ahmed Q H Safi, a resident of Ramallah, Palestine.
Cryptocurrencies were funnelled through various private wallets and eventually landed in wallets operated by Palestinian organization Hamas in Gaza, Egypt, and the military wings of Palestinian organization Hamas. One of the wallets, however, was seized and frozen by the National Bureau for counter-terrorism financing in Israel. The investigation found that the bitcoins and other cryptocurrencies were stolen from the complainant's wallet.
Israel responded to suspicion that Hamas had started a crowdfunding campaign via social networks urging the public to deposit cryptocurrencies into their accounts with the outbreak of war. The Israeli Police Cyber Unit and the Ministry of Defense froze these cryptocurrency accounts with the cooperation of the Binance cryptocurrency exchange, aiming to redirect the funds to the state treasury.
The exact information about the number of frozen accounts and the value of seized cryptocurrencies remains unknown.
Hamas had historically supported crypto as a fundraising method. In April, however, the group announced it would discontinue accepting donations using Bitcoin, a result of a rise in 'hostile' activities against donors.
Also read: Fake 'nuclear bomb alerts' to taking down govt websites, the Israel-Hamas war goes digital.