Israel Seizes 190 Binance Accounts Linked to Terrorist Groups, Crypto Exchange Defends Compliance Efforts

Israel has reportedly seized approximately 190 accounts at leading cryptocurrency exchange Binance since 2021, alleging connections to terrorist groups, including the Islamic State. According to official documents from Israeli authorities, as reported by Reuters, two Binance accounts were linked to the Islamic State, a jihadist militant group that once controlled territories in Syria and Iraq during 2013 and 2014. Furthermore, dozens of other accounts have been linked to the Islamist Hamas group.

The Israeli government's counter-terrorist unit claimed in the document that seizing the two accounts in January was "necessary to thwart the activity of the terrorist organization Islamic State." Binance, in response to the Reuters article, published a blog post on Friday, stating that the news agency "deliberately" omitted critical facts to "fit their narrative."

The crypto exchange stressed that it is impossible for any exchange or individual to block or reverse a digital asset deposit once a transaction has been verified on the blockchain. Binance added that when they learn of malicious activities, they intervene and take appropriate action, including freezing funds and cooperating with law enforcement to support investigations.

Binance also highlighted that bad actors do not register accounts under the names of their criminal organizations, which is why their team collaborates with law enforcement, using information only available to them, to identify individuals operating accounts for illicit organizations.

Over the past year, the world's largest crypto exchange has faced scrutiny for its allegedly weak money laundering controls. In a report from December 2022, Reuters claimed that Binance had processed more than $10 billion in payments for those seeking to evade U.S. sanctions.

In its blog post, Binance emphasized that it currently employs over 750 staff members focused on compliance and has assisted law enforcement in freezing or seizing assets worth over $1 billion so far this year.

The situation involving Binance and the alleged links to terrorist groups raises concerns about the use of cryptocurrencies for illicit activities. As decentralized digital currencies continue to grow in popularity and usage, it becomes increasingly crucial for exchanges and other players in the industry to develop robust compliance and monitoring systems to prevent their platforms from being used for unlawful purposes.