Israel seized Binance crypto accounts to ‘thwart’ Islamic State, document shows

Israel has seized around 190 crypto accounts at crypto exchange Binance since 2021, including two it said were linked to Islamic State and dozens of others it said were owned by Palestinian firms connected to the Islamist Hamas group, documents released by the country’s counter-terror authorities show.

Israel’s National Bureau for Counter Terror Financing (NBCTF) on Jan. 12 confiscated two Binance accounts and their contents, one of the documents on the NBCTF’s website showed. The seizure was to “thwart the activity” of Islamic State and “impair its ability to further its goals,” the NBCTF said on its website.

The NBCTF document, which has not been previously reported, did not give any details on the value of the crypto seized, nor how the accounts were connected to Islamic State.

Binance, the world’s largest crypto exchange by trading volumes, did not respond to Reuters’ calls and emails seeking comment.

Israel’s defence ministry, which is responsible for the NBCTF, did not immediately respond to a Reuters request for comment.

Under Israeli law, the country’s defence minister can order the seizure and confiscation of assets that the ministry deems related to terrorism.

Regulators globally have long called for tighter controls on crypto exchanges to prevent illegal activities, from money laundering to the financing of terrorism. The seizures by Israel’s NBCTF highlight how governments are targeting crypto companies in their efforts to prevent illegal activity.

Binance, founded in 2017 by CEO Changpeng Zhao, says on its website it reviews information requests from governments and law enforcement agencies on a case-by-case basis, disclosing information as legally required.

Binance has also said it checks users for connections to terrorism and has “continued to invest tremendous resources to enhance its compliance program,” it told U.S. senators in March in response to their requests for information on Binance’s regulatory compliance and finances.