Federal authorities seized over $200,000 in cryptocurrency linked to Hamas fundraising operations, striking a blow against terror financing. The Department of Justice confiscated exactly $201,400 in Tether (USDT) after tracing the funds to Hamas-controlled addresses. Not their first rodeo with digital money laundering, apparently.
Federal crackdown nets $201K in Hamas crypto funds, revealing digital money trails aren’t as anonymous as terrorists hoped.
The investigation uncovered a sophisticated network of 17 rotating crypto addresses used to funnel over $1.5 million since October 2024. Clever setup. The seizure included one wallet containing $89,900 and three accounts holding $111,500.
Hamas operatives weren’t exactly subtle with their fundraising methods. They used encrypted messaging groups to solicit donations, directing supporters to multiple addresses before pooling funds in a central operational wallet. Once collected, the money moved through exchanges and over-the-counter brokers. Some accounts were registered by Palestinian nationals in Turkey. Because nothing says “legitimate financial activity” like constantly switching wallets and jurisdictions.
This action represents part of a broader crackdown involving multiple agencies. The Treasury Department has imposed sanctions on Hamas-linked facilitators, working alongside Australia and the UK in coordinated efforts initiated in January 2024. OFAC led sanctions were particularly significant in disrupting these financial networks. Previous investigations tracked $165 million in suspicious crypto transactions.
The case highlights growing legal complications in the crypto space. Families of victims from the October 7, 2023 attack have sued Binance, which already paid $4.3 billion in 2023 for anti-money laundering violations. Meanwhile, Israeli authorities seized 190 Binance accounts tied to terrorism since 2021. The funds traveled through centralized exchanges where identity verification and anti-money laundering checks should have flagged suspicious activities.
Hamas has requested crypto donations since at least 2019, preferring stablecoins like USDT for their value stability. The Congressional Research Service has documented these fundraising initiatives since 2019. Blockchain’s permanent records are both a challenge and a tool for investigators. The irony.
Global coordination continues, with authorities from multiple countries working to disrupt digital asset transfers used for illicit purposes. The DOJ and FBI are pursuing additional connections, developing better capabilities to track digital assets while monitoring encrypted communication platforms. The cat-and-mouse game continues.
