The US Justice Department made headlines Thursday with the announcement of a significant seizure of $201,400 in cryptocurrency linked to fundraising addresses controlled by Hamas. This marks a targeted strike against the group’s financing network, with investigators tracing the funds back to Tether (USDT) that had been laundered through various virtual currency exchanges since October 2024.
Court documents revealed that a encrypted messaging group claiming affiliation with Hamas had provided supporters worldwide with 17 rotating crypto addresses for donations. These funds were funneled into a central operational wallet and then laundered through a chain of virtual currency exchanges and over-the-counter brokers.
In response to this illegal activity, legal action has been taken to target cryptocurrency accounts tied to terror funding. US Attorney Martin emphasized the importance of shutting off the flow of funds to Hamas, stating that every cent intended to support their activities will be located and seized.
The recent seizure included one cryptocurrency address valued at $89,900 and three additional accounts holding approximately $111,500. These accounts were registered in the names of Palestinian nationals residing in Turkey and other countries.
This crackdown on Hamas’ financial networks is part of a broader effort by US and international authorities to disrupt the group’s operations. The US Treasury Department has imposed sanctions on facilitators linked to Hamas, while allied governments have sanctioned Hamas-affiliated cryptocurrency accounts. Israel’s National Bureau for Counter Terror Financing has also seized millions of dollars in digital assets related to Hamas.
In a related development, families of victims of a Hamas attack on Israel in October 2023 filed a lawsuit against crypto exchange Binance in January 2024, alleging that the platform aided terrorist financing. Binance has denied these allegations. Additionally, US and UK sanctions have targeted online outlets like Gaza Now for soliciting crypto donations to benefit Hamas.
The global crackdown on Hamas’ crypto networks highlights the ongoing efforts to disrupt terrorist financing and ensure that funds intended for illegal activities are seized. The US government’s seizure of cryptocurrency earmarked for Hamas underscores the commitment to combatting terrorism and protecting national security.