JERUSALEM (AP) โ The Israeli government said Tuesday it had seized millions of dollars in cryptocurrency from accounts that had sent or received funds in alleged financing schemes for a powerful arm of the Iranian military and the Iranian-backed Hezbollah militant group in Lebanon.
Israeli Defense Minister Yoav Gallant said he issued an order to seize the cryptocurrency wallets and hand over the funds to the Israeli government.
He described the โextensiveโ operation as the first by Israel to attack the Hezbollah militant group and the Iranian paramilitary Revolutionary Guard's elite Quds Force, two organizations that have vowed to destroy Israel. Both have been designated by the United States and some other governments as terrorist organizations and excluded from the traditional global financial system.
It was a multi-agency effort, Gallant said, involving Israel's Mossad spy agency, Israel's military intelligence office, Israeli police and others.
Israel previously seized cryptocurrency belonging to the paramilitary arm of the Hamas rulers in Gaza as part of counterterrorism financing investigations.
โThis is the first incident of this magnitude,โ Gallant said, noting that the effort took place earlier this week. "We have effectively cut off the flow of terrorist funds through this channel."
Iran's mission to the United Nations did not immediately respond to a request for comment on Israel's announcement.
Gallant alleged that Hezbollah and the Quds Force rely on virtual currency to finance their militant activities. Cryptocurrencies like Bitcoin are favored for illicit transactions because they are perceived as difficult to track. Anyone in the world can create a Bitcoin account and start receiving digital funds without providing a name or address.
Countries facing US sanctions, such as Israel's regional foe Iran, have worked to create their own cryptocurrencies to circumvent financial restrictions.
Gallant said Israel's seizure of the illicit funds should serve as a warning to "whoever finances terrorism," as Israeli authorities have developed tools and techniques that can identify those involved in so-called blockchain transactions. .
