FBI Seizes $200,000 in Cryptocurrency from Hamas-linked Wallets

The U.S. Federal Bureau of Investigation (FBI) has successfully seized over $200,000 in cryptocurrency from several wallets and exchange accounts linked to the Palestinian militant group Hamas. This operation, announced on Thursday, highlights the growing concern over the use of digital currencies in terrorist financing. The seized funds, valued in USDT, were part of a larger network that had received over $1.5 million in crypto donations since last October. These donations were allegedly laundered through a series of crypto exchanges and transactions, making it difficult to trace the origin and destination of the funds.

The wallet addresses involved in this operation were promoted in a group chat claiming association with Hamas, a designated terrorist organization by the U.S. and the European Union. The funds were subsequently laundered through various crypto exchanges and transactions, making it challenging to track the flow of money. The seized accounts were registered to Palestinian individuals living in Turkey and other locations, further complicating the investigation.

U.S. Attorney Edward R. Martin Jr. of the District of Columbia emphasized the significance of this seizure, stating that the office will relentlessly pursue every cent of money intended to fund Hamas. He underscored the group's responsibility for the deaths of many U.S. and Israeli nationals, reiterating the commitment to stopping their campaign of terror and murder. The seizure included approximately $90,000 from an undisclosed number of wallets and another $112,000 from three exchange accounts.

This operation is part of a broader effort to disrupt terrorist financing networks. Previous actions by the U.S. Treasury Department and other foreign governments have targeted Hamas-linked financial networks and facilitators of crypto transfers. In April 2023, Israel’s Defense Ministry’s National Bureau for Counter Terror Financing (NBCTF) seized nearly 200 cryptocurrency accounts tied to Palestinian currency exchanges. According to a report from a blockchain analytics firm, the NBCTF has seized tens of millions of dollars in crypto from Hamas-linked accounts over the last few years.

The use of cryptocurrency by Hamas to move funds dates back to at least 2020. This method allows the group to mitigate the risks associated with physically transporting cash and to evade financial monitoring. The decentralized nature and relative anonymity of cryptocurrencies make them an attractive option for terrorist organizations seeking to transfer funds across borders without detection. This seizure serves as a reminder of the need for enhanced vigilance and cooperation among law enforcement agencies to counter such threats.

The successful seizure of these funds demonstrates the capabilities of law enforcement in tracking and intercepting illicit financial transactions. It also underscores the importance of international cooperation in combating terrorism. By disrupting these financial networks, authorities can significantly impede the operational capabilities of terrorist groups, thereby reducing their ability to carry out attacks. This operation sends a clear message to terrorist organizations that their use of cryptocurrencies will not go unnoticed or unpunished, highlighting the importance of continued efforts to monitor and regulate the use of digital currencies.