US DOJ Reports Shocking Hamas Crypto Fundraising Activity – $201,400 Laundered Through Crypto Exchanges

The US Justice Department has reported that it has seized over $200,000 worth of crypto. Based on the report, these were meant to be sent to the terrorist organisation Hamas. As such, this currency was most likely going to be used for the growth of this militant group. The currency was tracked from the wallets associated with Hamas crypto fundraising.

Behind the Blockchain: $1.5M Crypto Fundraising Exposed

The exact seized amount is $201,400; however, these wallets have been used to launder over  $1.5 million. This process of crypto laundering and Hamas crypto fundraising has allegedly started in October 2024. Based on the report, the crypto laundering involved using a number of  “virtual currency exchanges”. Additionally, the US Justice Department reported that Hamas “leveraged suspected financiers and over-the-counter brokers,”. Moreover, it was also stated that these digital currencies are spread out over 17 addresses. The DOJ also provided the related seizure warrant for this initiative (Image 1). 

Image 1 –  Provided by US DOJ, published on TradingView, March 28, 2025.

These efforts come after the US Treasury’s Office of Foreign Assets Control placed sanctions on facilitators of Hamas crypto holdings. This included networks, exchanges and any financial entity that had played a role in these transactions. These sanctions were announced on January of 2024 and were accompanied by similar sanctions from various countries, like UK and Australia. There was also a previously placed set of sanction in 2023, which these new sanction expanded and built upon. 

Binance and Hamas: A Timeline of Allegations,

Hamas crypto holdings has been growing for years now as the history of legal battles and sanctions show. For instance one lawsuit against Binance and its former CEO Changpeng Zhaowas brought to the court in January of 2024. Families of three victims of Hamas attack on Israel were involved in this case. This lawsuit was opened because it was alleged that Binance had helped Hamas’s crypto accumulation efforts. 

In the defense, the lawyer representing Binance and its CEO stated that they had no particular connection to Hamas. There are also many more legal cases that involve anti money laundering efforts and fines from the USA’s government. One of the biggest os such cases, which also involved the lack of anti money laundering control, ended in November 2023. In this case, Binance reached a settlement with the DOJ for $4.3 billion. 

Crypto Under Fire: Lawmakers Push for Tighter Controls

Based on a report from the Congressional Research Service, published in December 2024, Hamas has been gathering crypto for years. This report highlights that the terrorist organisation has been seeking crypto donations since 2019. However, this report could not find any evidence that shows how much crypto donations were gathered. As such, the US has been increasingly becoming strict with money laundering laws and their enforcement. As reports come in about more terrorist groups using digital assets, some officials are looking to tighten anti-money laundering laws. However, it is worth noting that most financial activity in the crypto space is proven to be legitimate.

Terrorism and Crypto: Myths vs. Reality

Data and market analysis show that the terrorism related crypto transactions are a small part of the crypto space. This comes from a 2023 report by the research firm Chainalysis, which has analysed the financial movements of such organisations. According to this research, most terrorist groups still prefer to use traditional funding methods. These criminal groups’ activities also show that they still like to use fiat for their financial needs. So, as such, the world of crypto is vast and dynamic, and with a scope comes bad actors and criminals.