US Government Seizes Crypto Funds Allegedly Earmarked for Hamas
The US Justice Department announced Thursday that it has seized $201,400 in crypto traced to fundraising addresses controlled by Hamas, marking a targeted strike against the group’s financing network.
According to a statement, investigators identified the seized funds as Tether (USDT) that flowed through addresses used to launder more than $1.5m in virtual currency since Oct. 2024. The funds were earmarked for Hamas’ operations, officials said.
Court documents reveal that an encrypted messaging group claiming affiliation with Hamas provided supporters worldwide with at least 17 rotating crypto addresses. Donors sent digital currency into a central operational wallet, which was then laundered via a chain of virtual-currency exchanges and over-the-counter brokers.
Legal Action Targets Crypto Accounts Tied to Terror Funding
“Hamas is responsible for the deaths of many US and Israeli nationals, and we will use every legal tool at our disposal to stop their campaign of terror and murder,” said US Attorney Martin.
“These seizures are but one illustration of the determination of this office and the Department of Justice to shut off the flow of funds to this group, and to locate every cent intended to support their activities, no matter what form it takes.”
The recent action included one cryptocurrency address valued at about $89,900. Three additional accounts held roughly $111,500. All of these accounts were registered in the names of Palestinian nationals. Those individuals allegedly live in Turkey and other countries.
Global Crackdown Intensifies on Hamas’ Crypto Networks
This move builds on a broader effort by US and international authorities to disrupt Hamas’ financial networks. Over the past several years, the US Treasury Department has imposed sanctions on facilitators linked to Hamas.
Allied governments have also sanctioned Hamas-linked cryptocurrency accounts. Meanwhile, Israel’s National Bureau for Counter Terror Financing has seized tens of millions of dollars in digital assets.
In Jan. 2024, families of victims of Hamas’s Oct. 7, 2023 attack on Israel sued crypto exchange Binance. They allege the platform aided terrorist financing, a claim Binance denies.
Also last year, US and UK sanctions targeted the online outlet Gaza Now for soliciting crypto donations to benefit Hamas.