A joint operation uncovered a web of electronic wallets used by Hamas to raise funds. Hamas has been waging an online campaign to raise donations for its military wing. Defense minister Benny Gantz ordered security forces to seize the accounts.
Efforts accelerated after the 11-day war in Gaza in May this year.
US justice department said it had seized millions of dollars from cryptocurrency accounts that armed groups, including al-Qaeda and ISIL (ISIS), relied on to finance their organisations and violent plots.
Last year, the department seized about $2m, in addition to more than 300 cryptocurrency accounts, four websites and four Facebook pages related to the schemes.
Israel has waged four major offensives on the besieged Gaza Strip, killing thousands of civilians. The latest one took place in May, killing 260 Palestinians, including at least at least 66 children.