Israel Seizes Millions of Dollars Worth of Cryptocurrency Belonging to Its Enemies: Report

The Israeli government says it has seized millions of dollars worth of cryptocurrency from accounts allegedly tied to financing two enemy groups.

According to a new Associated Press report, Israeli Defense Minister Yoav Gallant issued the order for the seizure of cryptocurrency wallets and the transfer of millions of dollars worth of digital assets to the Israeli government.

The wallets were allegedly associated with financial schemes tied to groups sworn to destroy Israel, the Hezbollah militant group and the Iranian paramilitary Revolutionary Guard’s elite Quds Force.

Israel’s Mossad spy agency, the Israeli military intelligence office and the Israeli police were among those who participated in the seizure, according to the report.

Says Gallant,“This is the first incident of this magnitude. We have effectively cut off the flow of terror funds via this channel.”

Gallant reportedly alleges that both Hezbollah and the Quds Force rely on digital assets like Bitcoin (BTC) to finance their military operations since they can pose challenges to track the flow of funds.

However, Gallant says that Israeli authorities have developed the means to identify those behind blockchain transactions, according to the report, and that the seizure should serve as a warning to “whoever finances terror.”

Since the two groups have been designated by the United States and some other governments as terrorist organizations they are not able to use the traditional global financial system, the report says.