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Israeli court approves seizure of cryptocurrency in terrorism-linked wallets

This sets a precedent and enables the defense establishment to continue enforcement against digital wallets that are under MoD sanctions

Illustration. BIGSTOCK/Copyright: Dusan_Zidar
Illustration. BIGSTOCK/Copyright: Dusan_Zidar

A precedent was made at the Tel Aviv Magistrate Court last Thursday, when the justice authorized the seizure of cryptocurrency from digital wallets, previously used to transfer funds for terror activities.

Based on this decision, cryptocurrency worth about NIS 116,000 (over $33,000) was confiscated from wallets which were included in a seizure order that Minister of Defense Benny Gantz signed in December 2021. This, in addition to NIS 2.6 million (over $750,000) seized from the wallets shortly after the order was signed.

The court’s decision constitutes a significant step in the precedents of confiscating virtual assets through seizing orders, in accordance with Israel’s Counter-Terrorism Law.

Last year’s seizure order included about 150 digital wallets involved in transferring terror-related funds, and linked to the Al Mutahadun exchange company in the Gaza Strip, designated by Gantz as a terror organization due to the assistance it provides Hamas with receiving funds from overseas.

Hamas is continuously operating an infrastructure of exchangers, traders and companies engaged in importing goods into the Gaza Strip and bringing money into it for the purpose of funding the terror organization’s military.

Al Mutahadun, one of the most prominent companies, is owned by the Gazan Shamlah family, is known for providing Hamas – especially its military branch – millions of dollars a year.

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