On Tuesday, the Israeli government announced it had seized millions of dollars worth of cryptocurrency from accounts associated with the Iranian military’s elite Quds Force and Lebanon’s Hezbollah militant group. Defense Minister Yoav Gallant said he had issued an order to confiscate the digital wallets and transfer the funds to the Israeli government.
Gallant described the operation as extensive, noting it was the first of its kind against Hezbollah and the Quds Force, both of which are recognized as terrorist organizations by the United States and other nations. The mission was a joint effort between the Mossad spy agency, Israeli military intelligence, police, and other agencies.
According to Gallant, Hezbollah and the Quds Force are using cryptocurrencies to finance their militant activities. Bitcoin, in particular, is preferred for illicit transactions because it is difficult to trace. Nations under US sanctions, such as Iran, have also been attempting to create their own virtual currencies to bypass financial restrictions.
The Israeli defense minister stressed that the seizure of the illicit funds should be taken as a warning to anyone involved in financing terrorism. He said Israeli authorities have developed methods for identifying blockchain transactions and those behind them. The Iranian mission to the United Nations did not respond to a request for comment.
