US DOJ Seizes Over $200,000 in Crypto Linked to Hamas Terrorism Financing

The United States Department of Justice (DOJ) announced the seizure of over $200,000 in cryptocurrency allegedly used by Hamas to fund terrorist activities. This significant action, detailed in a March 27th statement, highlights the ongoing efforts to combat terrorist financing through digital currencies.

The $201,400 in cryptocurrency, tracked to addresses linked to Hamas, is believed to represent a fraction of a larger scheme. Investigations reveal that over $1.5 million in digital assets were laundered through a complex network involving various virtual currency exchanges, transactions facilitated by suspected financiers, and over-the-counter brokers since October 2024. These funds are currently held across at least 17 different wallets.

This seizure follows previous actions against Hamas’ cryptocurrency operations. In January 2024, the US Treasury’s Office of Foreign Assets Control, alongside UK and Australian counterparts, imposed sanctions on networks facilitating Hamas crypto transactions, building upon earlier sanctions from October 2023. The ongoing legal battles, such as the lawsuit filed by victims of Hamas attacks against Binance, further underscore the complexities of regulating cryptocurrency and preventing its misuse for terrorism financing.

The case highlights the urgent need for enhanced regulatory oversight within the cryptocurrency industry. While a 2023 Chainalysis report suggests that terrorism financing through crypto remains relatively small compared to traditional methods, the DOJ’s actions demonstrate a commitment to disrupting these activities and preventing the use of digital assets to fund terrorism.

Further Reading: Terrorism and the Israel-Gaza War: Weaponizing the Narrative Against Crypto