DOJ Seizes $200,000 in Cryptocurrency Linked to Hamas

The U.S. Department of Justice (DOJ) has successfully seized over $200,000 in cryptocurrency linked to Hamas, marking a significant blow to the terrorist organization's fundraising efforts. The confiscated digital funds, held in Tether (USDT), were traced to multiple wallets involved in processing over $1.5 million in cryptocurrency transactions since October 2024. Investigators were able to link these wallets to Hamas' fundraising activities, where individuals claiming affiliation with the group directed supporters to send cryptocurrency donations to various wallets. These contributions were then pooled into an operational wallet and transferred through multiple exchanges and brokers to obscure their origin.

The DOJ's seizure of these assets is part of a broader effort to dismantle the financial networks used by terrorist groups. By following the money trail, authorities detected 17 separate wallets participating in the transactions, highlighting the complexity and reach of Hamas' cryptocurrency operations. This action underscores the DOJ's commitment to disrupting the financial infrastructure that supports extremist organizations, ensuring that their funding is redirected away from harmful activities.

The U.S. government's crackdown on Hamas-linked cryptocurrency transactions is not a new development. In January 2024, the Treasury Department, in collaboration with other countries, issued sanctions against individuals and organizations involved in processing cryptocurrency for Hamas. These sanctions followed previous restrictions implemented in October 2023, demonstrating a coordinated international effort to curb the use of digital currencies for illicit purposes. Additionally, families of victims from the Hamas attack on Israel in October 2023 filed a lawsuit against a major cryptocurrency exchange, alleging that the exchange facilitated financial transactions for Hamas. The exchange denied these allegations, stating that it had no special relationship with the terrorist group. In November 2023, the exchange engaged in anti-money laundering compliance settlements, paying the Department of Justice a significant amount.

The growing scrutiny of cryptocurrency in terrorism financing reflects a heightened awareness among authorities regarding the use of digital assets by militant groups. A December 2024 report documented Hamas's request for cryptocurrency donations starting from at least 2019, although the general impact of these fundraising initiatives remains unclear. A 2023 report by a blockchain analytics firm revealed that terrorist organizations make limited use of cryptocurrency, preferring conventional financial approaches. Despite this, several U.S. government officials have expressed doubts about the necessity of additional oversight to prevent the misuse of digital assets.

The DOJ has stated that terrorism financing, cryptocurrency monitoring, and seizure operations will continue as part of larger initiatives aimed at disrupting extremist organizations. By redirecting their financial base, these efforts seek to undermine the operational capabilities of groups like Hamas, ultimately contributing to global security and stability.