Terrorism funding: why integrity in blockchain intelligence matters

It has been more than three weeks since Hamas, a terrorist organization, launched a bloody assault on Israeli civilians.  This has led to greater escalations between Hamas militants and the Israeli military, exacerbating a political crisis long faced by the Palestinian people. 

Civilian casualties continue to mount amid a humanitarian crisis for Gaza’s residents and the looming prospect of a destructive Israeli ground offensive. 

This is but the latest development in a long history of crises affecting the Palestinian and Israeli people, catalyzed by the actions of Hamas militants and escalating tensions in the Levantine region and greater Middle East. The current situation risks unfolding into a broader conflict between Israel and its neighbors, with rhetoric and provocations abound from many interlocutors including the Islamic Republic of Iran and their regional allies; plus the allies of Israel from the United States, United Kingdom, and France. 

At the heart of these latest developments have been a growing number of inquiries about the role that crypto assets have played in supporting and enabling Hamas, both before the bloody and heinous acts of October 7, 2023, and in sustaining their operations until now.

So, what have we seen concerning the Israel-Hamas conflict?

This question highlights the current issues with donations for the latest conflict in Gaza. There are many humanitarian calls to support those innocent people who have been affected by the fighting, but equally so this opens lines to abuse and even fuelling the conflict further.

Israel has a strong history of countering terrorism financing; exploits of its Task Force ‘Harpoon’ created by the late Meir Dagan, a celebrated figure and former head of the Israeli Intelligence Service “Mossad” are among the stuff of legend in Counter Terrorism Financing circles. 

From defrauding senior militants with bogus investments to suing individual donors to terrorist organizations, the rationale was clear – take money from Israel’s enemies and they will lose the ability to operate.

In line with this ethos, recently the Israeli government issued a raft of sanctions against crypto asset addresses believed to be involved in terror financing. 

Of these humanitarian fundraisers was a service now designated by the US Government’s Office of Foreign Assets and Control (OFAC) called ‘BUY CASH’. Though designated by the US on October 18, it had been long designated by the Israeli National Bureau for Counter Terror Financing (NBCTF) on June 30, 2021.

BUY CASH – Terrorism Financing?

BUY CASH is a currency exchange service located in Khan Yunis, Gaza. Since removed but available on archive.org, its website is in keeping with many other money exchange services across the wider Middle East. It doesn’t have a login page or price ticker, instead it offers a nondescript list of currency trading pairs, and contact telephone numbers.