There are both advantages and disadvantages to using cryptocurrencies. Unfortunately, one significant disadvantage is that it can potentially be used to finance terrorist groups. The secret and anonymous nature of the technology has made it an attractive option for many such organizations seeking to receive donations while maintaining their anonymity.
For quite some time, this situation has been occurring in Israel, and the authorities have been diligently striving to prevent these donations. Fortunately, luck seemed to be on their side when the government declared that they had successfully intercepted numerous cryptocurrencies intended to finance terrorist operations within the country.
The Israeli ministries of defense and justice and several intelligence and enforcement agencies collaborated to make this interception possible, according to a report from Chainalysis.
Israeli's National Bureau for Counter Terrorist Financing announced on June 28th that they had gotten their hands on several crypto wallets which contained millions of dollars that were meant to support acts of terrorism in the country.
According to reports from the local media, the crypto used for illegal activities in the country was intercepted due to effective collaboration from the Israeli defense and justice ministries, Israeli intelligence, and new technology.
Israel Fighting New Wars with the Advent Of New Technologies
In his opening statement, the Defense Minister, Yoav Gallant, said the country was fighting new wars due to advanced technologies like the crypto industry. He mentioned that since many funds used in supporting terrorism were no longer passing through traditional financial institutions, it was very sophisticated to pin down those supporting terrorism.
"Since its establishment, the State of Israel has been contending with complex security threats. With the years and the technological changes, the threats are changing and becoming more sophisticated. Along with the constant and uncompromising battle against terrorism-terrorists and those dispatching them, a new battlefront has been added: Combating the resources behind terrorism, and simply stated: Combating terror funds," Defense Minister Yoav Gallant said in his address.
"This is not an easy task, which becomes even more complex when digital currencies are involved. Anyone who finances terrorism, or maintains financial ties with terrorist operatives, must know that he is a target similar to whoever directs and dispatches terrorism," he added.
Developing New Technologies to Fight Terrorism
According to the Defense Minister, Yoav Gallant, Israel had to develop new technologies that will help their fight in intercepting those funding terrorism. There were also changes in Israel's crypto laws to fast-track success in their fight against terrorism. These new technologies helped them seize funds transferred to the terrorist organization Hezbollah and the Iranian Quds Force.
"In recent months, we have developed at the National Bureau for Counter Terror Financing in the Ministry of Defense, in collaboration with intelligence and enforcement entities (the Mossad, IDF Intelligence Branch, Israel Police and additional entities), new capabilities that have led to very significant achievements also on this battlefront."
"Since the beginning of the year, Hezbollah, Quds Force, and Syrian elements have used digital currencies in order to obtain in this manner funds from third parties, mainly money changers with whom they perpetrated unlawful transactions, which were used by the terrorist organizations for their ongoing activities," the Defense Minister added.
According to more information from Chainalysis, Israel seized a total of $1.7 million in this operation.