Israel’s Defence Minister, Yoav Gallant, announced on Tuesday that the country had successfully seized digital wallets containing millions of dollars in cryptocurrency linked to the Islamic Revolutionary Guard Corps’ (IRGC) Quds Force and the Hezbollah terror group, both backed by Iran. Speaking at a conference hosted by the National Bureau for Counter Terror Financing (NBCTF), Gallant highlighted the operation as the first of its kind against cryptocurrency assets associated with these notorious terrorist organisations.
Describing the recent operation as extensive and precedent-setting, Gallant emphasized its importance in exposing the route used for financing terrorism through digital currencies. “This is the first incident of this magnitude, in which an infrastructure led by Hezbollah and the Iranian Quds Force that transferred millions of dollars to be used by terror elements was thwarted,” stated Gallant. The operation represents a significant milestone in Israel’s ongoing efforts to disrupt the financial networks supporting these extremist groups.
According to Gallant, Hezbollah, the IRGC’s Quds Force, and certain Syrian elements have been utilizing cryptocurrency since the beginning of the year to fund their daily activities. These funds are sourced from a third party and then channeled to the terror groups through money exchangers, creating a complex web of financial transactions. The Defence Minister issued a stern warning, stating, “Whoever finances terror or maintains a financial relationship with terror operatives must know that he is a target, just like anyone who directs terrorism.” He also underscored Iran’s involvement, highlighting its role as the primary financier, trainer, and instigator of terrorism against Israel and numerous other countries worldwide, often operating through its proxy groups.
The recent operation targeting cryptocurrency assets connected to the IRGC’s Quds Force and Hezbollah is part of Israel’s broader strategy to combat terrorism financing. In the past, Israel has successfully seized dozens of digital wallets linked to the Hamas terror group. These actions demonstrate the country’s proactive stance in countering the use of digital currencies for illegal purposes.
Cryptocurrencies have gained notoriety for providing a high level of anonymity, making them an attractive option for financing criminal activities and terrorist operations. Bitcoin, in particular, has faced criticism for its use on underground websites involved in the sale of drugs and weapons. The latest operation by Israel serves as a reminder of the challenges posed by these digital assets in combatting illicit activities and emphasises the need for continued vigilance and international cooperation in tackling such threats.
The ability to disrupt the financing networks of terrorist organisations is crucial in curbing their operations and protecting national security. Israel’s efforts, combined with those of other nations, aim to ensure that cryptocurrencies are not misused to fund acts of violence and terrorism. By targeting the financial infrastructure that sustains these extremist groups, governments worldwide can work towards a safer and more secure future.
