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- The U.S. Justice Department seized over $200,000 in cryptocurrency linked to Hamas.
- The funds were part of a larger scheme that laundered over $1.5 million since October 2024.
- Authorities continue efforts to block financial support to terrorist groups.
The U.S. Justice Department announced the seizure of approximately $201,400 in cryptocurrency. The funds were linked to Hamas and were intended to support its operations. Investigators traced the assets to cryptocurrency wallets and accounts controlled by Hamas.
Internet campaigns raised the funds and sent them through various digital channels to avoid detection. The investigation confirmed that Hamas supporters received several cryptocurrency addresses.
These addresses enabled them to accept donations, which they then transferred to operational wallets. They laundered the funds through virtual currency exchanges and over-the-counter brokers. Law enforcement believes the group used this method to accumulate over $1.5 million since October 2024.
The Justice Department stated that the purpose of the operation was to stop Hamas’s access to funding. Cutting off funding prevents the group from carrying out further operations. Officials indicated that they will continue to trace and break up illicit financial networks.
Authorities Track Global Crypto Movements
Terror organizations have increased the utilization of cryptocurrency to move funds. Digital assets provide a way of moving money anonymously and quickly. Cryptocurrency transactions have the ability to bypass regulatory oversight, as opposed to traditional banks. This provides an easy way for terror organizations like Hamas to receive and send money.
Investigators identified at least 17 cryptocurrency addresses used in the laundering scheme. The organizers requested sympathizers to send funds to those addresses. They then transferred the funds through various exchanges to obscure their origin.
The majority of the transactions were via over-the-counter brokers who operate outside the regular banking system. The brokers hide the origin of funds and enable their withdrawal in other currencies. Authorities discovered that some frozen cryptocurrency accounts were registered under Palestinian individuals.
These individuals were working from Turkey and other foreign hubs. This cross-border movement of funds refers to the global nature of illicit financing. Law enforcement agencies continue to work with foreign agencies in order to trace and seize such assets.
Crypto Seizures Target Illicit Funding
The Federal Bureau of Investigation (FBI) played a key role in this operation. The Albuquerque Field Office, counterterrorism, and cyber divisions led the operation. Officials pointed out that terrorist organizations are undermined by financial disruptions. Denying access to funds makes it harder for groups to function and plan attacks.
The Department of Justice reaffirmed its commitment to combating terrorist financing, particularly in the crypto space. Officials stated they will employ legal tools to trace and seize illicit crypto funds. By targeting cryptocurrency transactions, officials aim to limit access to digital financial resources used for unlawful activities.
Freezing over $200,000 worth of virtual assets is a step to cut financial channels to Hamas. Law enforcement agencies will continue to monitor and shut down such activities. Disrupting the flow of funds is still an important part of counterterrorism.
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