Tzahal, the Israeli Defense Force, sanctioned several Binance accounts and wallets on Tron’s blockchain. Israelis allege they belong to Palestinian Islamic Jihadists.
An analysis by ChainArgos shows that those Tron wallets received 93.7 million Tether (USDT), much of which came from Audax Trading, a crypto scam.
Although the owner(s) of these wallets — allegedly Islamic jihadists, according to Tzahal, and widely assumed on social media to overlap with Hamas members — have subsequently withdrawn all funds from them, the connections are particularly salient given the recent onset of war between Israel and Palestine.
Hamas recently fired thousands of rockets from Palestine into Israel and Israel responded with a declaration of war. Israeli forces are now conducting airstrikes on the Palestinian capital Gaza and Israel’s defense minister has ordered an evacuation of civilians from the city as Tzahal prepares a major military assault.
Terrorists have accounts at Binance
According to the US Commodity Futures Trading Commission (CFTC), Binance’s compliance team was aware of violations of anti-terrorism financing regulations, yet joked about Binance’s non-compliance. Specifically, Binance’s chief compliance officer (CCO) explained to a colleague that terrorists like Hamas usually send “small sums” as “large sums constitute money laundering.” That colleague replied to Binance’s CCO, “can barely buy an AK47 with 600 bucks.”
Jihadists’ USDT and a crypto scam
ChainArgos found evidence that much of the USDT funding the Tzahal-sanctioned wallets might have been stolen from Audax Trading victims or otherwise laundered through Audax Trading.
At least 23,653 Tron blockchain wallets have sent funds to Tzahal-sanctioned wallets. Most of the $93.7 million worth of USDT appears to have come from addresses associated with the Audax Trading scam.
New Zealand’s Financial Markets Authority has warned that AudaxTrading.net is an “imposter site,” pointing out that it doesn’t have a financial services provider license or Allianz insurance, and that it has no affiliation to a legitimate business with a similar name.
ChainArgos flagged one of these funding wallets as the 81st most active BUSD wallet. An algorithm using metrics set by a ChainArgos employee labeled it “BinancePeg-BUSD #81 by txn count.”
Israeli authorities requested that any businesses that might have interacted with these Tzahal-sanctioned wallets contact the police and file a report.