Gaza Groups Utilize Russian Crypto Exchange for Money Transfers
Palestinian militant organizations, including a group with links to Hamas, are utilizing a Moscow-based cryptocurrency exchange for money transfers estimated to be multi-million dollars. This platform, previously sanctioned by the United States, allows users to convert Russian currency into cryptocurrencies and subsequently withdraw fiat currency abroad. Moreover, the exchange reportedly provides services not only to extremist groups but also to criminal entities and affluent Russian individuals, according to reliable sources.
Extremist Cash Flow Through the Russian Crypto Exchange
The Wall Street Journal (WSJ) has uncovered that Islamic Jihad, an extremist organization operating in the Hamas-controlled Gaza Strip, has received a part of the USD 93 million payment through the Russian cryptocurrency exchange, Garantex.
The exchange was originally registered in Estonia but is currently headquartered in Moscow. The US Treasury Department imposed sanctions on the exchange in April 2022 as part of measures to curb Russian efforts to evade financial restrictions imposed in the wake of the Ukrainian invasion.
The crypto trading platform has been involved in illicit transactions, involving groups such as the ransomware organization Conti and the darknet market Hydra. The platform is also known to have been involved in money laundering for Russia's largest cryptocurrency pyramid scheme, Finiko, and in raising funds for the Russian far-right paramilitary unit, Rusich.
Hamas' Funding Strategy: Concealing Transactions
Hamas, the Islamist political and military movement responsible for a recent terrorist assault on Israel earlier this month, has employed a similar funding strategy to conceal its transactions and sidestep international sanctions, as cited in the WSJ report.
Garantex, the Moscow-based exchange at the center of this controversy, offers its users the facility to purchase cryptocurrency using Russian rubles. These digital assets can later be converted back into fiat currency and international transfers. The WSJ report indicates the challenges in tracking and preventing such transfers effectively.
Remarkably, despite the US sanctions, the cryptocurrency exchange, which boasts offices in the Moscow City business center, continues to operate actively. Its trading volume reached an impressive USD 865 million in June, surpassing the earlier levels seen before the platform was blacklisted.
The WSJ report does not specify the exact amount that Hamas may have received via Garantex, but it is worth noting that the Palestinian organization has been using wallets on the world's largest cryptocurrency exchange, Binance, to collect crypto donations. The Israel Police recently announced that it had frozen these accounts with the assistance of Binance.
What Lies Ahead?
As this alarming revelation comes to light, it raises the pertinent question of whether Palestinian groups might be relying on other Russian cryptocurrency exchanges for similar transactions.
Do you think Palestinian groups rely on other Russian crypto exchanges as well? Please share your thoughts and opinions on the subject in the comments section below.
Image source: Shutterstock
0 Comments