- The U.S. Justice Department has seized over $200,000 in cryptocurrency intended to support Hamas
- The funds were traced from fundraising addresses purportedly controlled by Hamas, which have laundered over $1.5 million in virtual currency since October 202
- Officials emphasize the commitment to dismantling Hamas’s financial networks using all available tools
The U.S. Justice Department (DOJ) has announced the seizure of over $200,000 in cryptocurrency intended to benefit Harakat al-Muqawama al-Islamiyya (Hamas). These funds were traced from fundraising addresses allegedly controlled by Hamas, which have laundered more than $1.5 million in virtual currency since October 2024. The DOJ stated that the action underscores its dedication to disrupting financial networks that support terrorist activities.
Palestinians Were the Source of the Funds
The DOJ revealed the seizure in a press release, revealing that the seized assets include cryptocurrency addresses valued at approximately $89,900 and three additional accounts containing about $111,500. These accounts were registered to Palestinian individuals residing in Turkey and other locations and were funneled through a series of virtual currency exchanges and transactions, leveraging suspected financiers and over-the-counter brokers to obscure their origins.
Court documents related to the case reveal that a group chat on an encrypted messaging platform, claiming ties to Hamas, shared at least 17 rotating cryptocurrency addresses with supporters around the world. Donors were urged to send funds to these addresses, which were then funneled into an operational wallet and laundered through a network of virtual currency exchanges, using suspected financiers and over-the-counter brokers to obscure the money trail.
More than a million dollars was raised and laundered using the laundering system and the virtual currency accounts described in the affidavit.
FBI Instrumental in Seizure
The FBI’s Albuquerque Field Office led the investigation, with support from the FBI Counterterrorism Division and Cyber Division. Assistant Director David J. Scott of the FBI Counterterrorism Division praised the agency’s efforts in stopping the money in its tracks:
Hamas raised and laundered more than a million dollars to support its terrorist operation, but through our investigation, the FBI traced and seized these funds. Disrupting funding mechanisms and seizing cryptocurrency from Hamas is one of the FBI’s many tools that we use in the fight against terrorism. The FBI will work with our partners to dismantle this terrorist group and protect the American people from their violent and horrific acts.
The Justice Department’s action reflects a broader strategy to combat terrorism by targeting its financial underpinnings. By successfully disrupting access to these funds, authorities aim to weaken Hamas’s operational capabilities and prevent further acts of violence. This seizure also serves as a reminder that cryptocurrencies cannot be used for illegal purposes with the impunity that many have believed to date.
