Cryptocurrency Stolen in Delhi Traced to Hamas-Linked Wallets

In a significant development, the Delhi Police's Special Cell managed to track cryptocurrency amounting to approximately Rs 4 crore, stolen from a local businessman's wallet in winter 2021.

Oct 14, 2023 - 12:35

In a significant development, the Delhi Police's Special Cell managed to track cryptocurrency amounting to approximately Rs 4 crore, stolen from a local businessman's wallet in winter 2021. While investigators successfully identified a few recipient wallet IDs, tracing the ultimate beneficiaries proved challenging. At a critical juncture, Mossad, Israel's intelligence agency, shared crucial intelligence with their Indian counterparts, revealing suspect wallets associated with terrorist groups engaged in funding illegal activities.

Numerous wallet addresses flagged in the intel were found to be under the control of the al Qassam brigades, an arm of the Palestinian group Hamas, and subsequently confiscated by Israel's National Bureau for Counter Terror Financing.

A major breakthrough occurred when the Special Cell's Intelligence Fusion & Strategic Ops (IFSO) unit cross-referenced the wallets. It emerged that several wallets receiving Bitcoin and Ethereum assets from Delhi were linked to Hamas' cyber terrorism division.

While Israel has responded strongly to Hamas in the aftermath of Saturday's attack, sources suggest intelligence agencies remain vigilant about potential renewed attempts by the group to procure funds through hacking operations in pro-Israel regions.

As of Tuesday, the cyber division of Israel Police froze numerous cryptocurrency accounts associated with Hamas fundraising efforts. Israel Police, via social media platform X (formerly Twitter), disclosed that Hamas had initiated a cryptocurrency fundraising campaign concurrent with the latest wave of terror attacks. Additionally, Israeli authorities urged the Binance cryptocurrency exchange to transfer the confiscated funds to the national treasury.

This Delhi case marked the inaugural instance of Hamas activity in India. Officers from the Special Cell have confirmed that investigative details were promptly relayed to the relevant authorities at the time. Former DCP (Special Cell) KPS Malhotra's team spearheaded the inquiry. "Indeed, our investigation led us to several wallets associated with the al Qassam brigades," Malhotra affirmed on Tuesday.

According to officers familiar with the investigation, the matter was initially reported in 2019 at the Paschim Vihar police station, subsequently being transferred to the Special Cell per court directives. Following the discovery of the Hamas link, technical analysis revealed that one of the confiscated wallets was registered to Naseer Ibrahim Abdulla in Gaza, and to Hamas operatives Ahmed Marzooq in Giza, and Ahmed QH Safi in Ramallah, all in Palestine. "The cryptocurrencies were funneled through various private wallets before landing in these suspected accounts," divulged a police official.