U.S. Seizes $201,400 in Cryptocurrencies Linked to Hamas

The U.S. Department of Justice has successfully seized $201,400 in cryptocurrencies that were intended to support the Palestinian militant group Hamas. The seizure, announced on Thursday, involved the confiscation of a cryptocurrency wallet containing $89,900 and three additional accounts holding digital assets worth $111,500. These wallet addresses have been linked to the laundering of over $1.5 million in digital currencies for Hamas since October 2024.

U.S. Attorney Edward R. Martin Jr. for the District of Columbia emphasized the Department of Justice's commitment to tracking down and seizing funds earmarked for Hamas, regardless of the form of currency. This action is part of a broader effort by U.S. authorities to disrupt the financial networks that support terrorist activities. The seizure of these funds is a significant blow to Hamas's financial operations and underscores the effectiveness of law enforcement in tracking and intercepting illicit funds.

Since the early 2010s, cybercriminals and militant groups have utilized privacy-focused blockchain technologies and cryptocurrencies to launder their ill-gotten gains and finance their operations. However, over the past few years, U.S. authorities have intensified their efforts to crack down on this practice, making it increasingly difficult for bad actors to operate undetected. The recent seizure is a testament to the ongoing vigilance and effectiveness of law enforcement in combating terrorist financing.

A group chat with alleged ties to Hamas facilitated the donation of cryptocurrencies to at least 17 wallet addresses through an encrypted communications platform. Financiers and over-the-counter brokers then laundered the funds through several crypto exchanges. The specific crypto exchanges used for the alleged money laundering have not been disclosed. The FBI Albuquerque field office played a crucial role in assisting with the investigation, highlighting the collaborative efforts of various law enforcement agencies in combating terrorist financing.

Assistant Director David J. Scott of the FBI Counterterrorism Division stated that disrupting funding mechanisms and seizing cryptocurrency from Hamas is one of the many tools the FBI uses in the fight against terrorism. This seizure is part of a broader strategy to cut off financial resources that could be used to fund terrorist operations, thereby enhancing national security and global stability. The move sends a clear message to terrorist organizations and their supporters that the U.S. is committed to using all available means to thwart their activities.