Israeli authorities to seize all terror-linked crypto wallets

The outgoing defense minister of Israel, Benny Gantz, on Sunday revealed that a Tel Aviv Magistrates’ Court on Thursday approved the seizure of all assets in terro-linked crypto wallets. 

The Dec. 15 ruling to seize crypto asset worth of $33,500 in over 150 wallets expands on a previous ruling that allowed Israeli authorities to only seize digital assets with a direct link to terrorism.

Benny Gantz, in one of the previous statements, reiterated his commitment to squashing terror groups and financiers attempting to circumvent the existing traditional financial systems. 

He went on to add that the Israeli defense authorities will continue to target the Iran-Hamas axis so that it can disrupt all of their funding channels.

Previous steps

In December 2021 the Israel defense minister announced that the government will be seizing 2.6 million Shekels which is $750,000 worth of cryptocurrencies from terrorist organizations like Hamas and their accomplice exchanges in the Gaza strip.

He further revealed that the terrorist group operates a network of cryptocurrency exchanges that facilitates the transfer of funds for the financing of its different terrorist operations. 

In February 2022, Israeli authorities, while acting on a tip-off, seized tens of thousands of Shekels from about 12 different crypto wallets linked to terror financing. 

The finance ministry had earlier made moves to regulate crypto

In November 28, the Israel Ministry of Finance, through its chief Shira Greenberg, released a 109-page document that seeks to create a comprehensive framework for crypto regulation, giving regulators the power to bring all trading platforms and crypto issuers within its scrutiny. 

Shira also recommended the adoption of strict licensing standards for crypto exchanges because that will protect and increase investors’ certainty in cryptocurrencies most especially those with stablecoins. 

She finally added that Israeli policymakers when implementing any digital asset-related rules must take into cognizance the need for “technological neutrality”.