TRON (TRX), a blockchain-based digital platformhas overtaken bitcoin (btc) as the platform of choice for financial transfers by groups such as Hamas and Hezbollah, which are designated as terrorist organizations by the United States, the United Kingdom, and other countries.
According to Reuters crypto-front-emerges-israels-militant-financing-fight-2023-11-27/” target=”_blank” rel=”nofollow”>reportThis development has opened a new front in Israel’s battle against funding alleged Iranian-backed militant groups.
Tron wallets targeted in Israeli seizures
According to the report, a comprehensive analysis of cryptocurrency seizures announced by Israeli security services since 2021 highlights a significant increase in attacks on TRON wallets and a decrease in seizures related to bitcoin wallets.
Israel’s National Terrorist Financing Bureau (NBCTF), responsible for the seizure operations, froze a total of 143 TRON wallets between July 2021 and October 2023, believing they were associated with “designated terrorist organizations” or involved in “serious terrorist crimes”. .”
In particular, 87 of these seizures occurred this year, including 39 purses linked to Lebanon’s Hezbollah and 26 purses associated with Palestinian Islamic Jihad, a Hamas ally.
In response to increased scrutiny of Hamas funding, Israel stepped up its investigative efforts. It found that 56 TRON wallets were connected to Hamas, and 46 of them were traced back to a Gaza-based currency exchange company called Dubai Co. For Exchange.
Following the recent Hamas attacks on Israel, the largest crypto account seizure to date was announced, freezing approximately 600 accounts associated with Dubai Co.
According to the report, several people whose funds were frozen in this seizure claimed to have been using TRON for legitimate business or personal financial purposes and denied any affiliation with Hamas or Islamic Jihad.
However, Israel designates Dubai Co. as a terrorist group due to its alleged assistance to Hamas, particularly in the transfer of substantial funds annually.
Key blockchain for Tether transactions
When contacted by Reuters, a TRON spokesperson, Hayward Wong, emphasized that all technologies have the potential to be misused, citing the example of using US dollars for money laundering.
Wong further stated that TRON lacks control over how its technology is used and stated that it is not linked to the groups identified by Israel.
The report also sheds light on the dominance of the Tether cryptocurrency (USDT) within the TRON network. Tether stated that it routinely tracks and freezes tokens used for illicit purposesworking in collaboration with law enforcement.
According to Reuters, TRON has become the leading blockchain for Tied transactions, hosting a remarkable $48 billion worth of tokens. Average daily transactions on Tron increased to 9.1 million from April to June, a notable increase of more than 70% compared to last year.
However, as crypto-giant-justin-sun-of-securities-law-violation/” target=”_blank” rel=”nofollow”>reported According to our sister website Bitcoinist, Tron has faced its share of controversies. Tron founder Justin Sun sued the US Securities and Exchange Commission (SEC) in March over allegations of artificially inflating trading volumes and selling unregistered Tron tokens.
It is important to note that crypto transactions related to terrorist groups have been decreasing since 2021, as seen in the chart below. Unlike traditional payment methods, bitcoin and cryptocurrencies provide authorities with a backdoor, a transparent path that has allowed them to stop illegal money flows.
The unfolding events in this matter have not yet been fully determined, and it remains uncertain whether there will be additional lawsuits and enforcement actions against the companies and cryptocurrency exchanges implicated in these allegations.
Featured image from Shutterstock, chart from TradingView.com
