US DOJ Seizes Hamas Crypto in $200K Terrorism Financing Bust

The U.S. Department of Justice (DOJ) confiscated more than $200,000 worth of cryptocurrency which belonged to Hamas. The digital funds operated from multiple wallets and investigators could link them to fundraising activities of the organization.

According to the DOJ, these wallets were used to process over $1.5 million in cryptocurrency transactions since October 2024. The seized funds were held in Tether (USDT), the most widely used stablecoin in the market.

Crypto Used to Raise and Launder Funds

Officials said that individuals claiming affiliation with Hamas directed supporters to send cryptocurrency donations to several wallets. These contributions were pooled into an operational wallet and then transferred through various exchanges and brokers to conceal their origin.

The authorities managed to follow the money trail which allowed them to detect 17 separate wallets participating in the transactions. The DOJ explained their seizure of assets during their continuous attempt to dismantle financial networks employed by terrorist groups.

US Crackdown on Hamas-Linked Crypto Transactions

The United States government continues working to restrict cryptocurrency-based illegal operations. The Treasury Department together with Australia and the UK issued sanctions against Hamas crypto processing individuals and organizations during January 2024. The new set of sanctions emerged after previous restrictions were put into place during October 2023.

The families of victims from the Hamas attack on Israel in October 7, 2023 filed a lawsuit against Binance in January 2024. The complaint alleged that the cryptocurrency exchange provided “substantial assistance” to Hamas by facilitating financial transactions. Binance denied the allegations, stating that it had “no special relationship” with Hamas. In November 2023 Binance engaging in anti-money laundering compliance settlements paid the Department of Justice $4.3 billion.

Growing Scrutiny of Crypto in Terror Financing

Authorities show rising awareness regarding militant groups that employ cryptocurrency for their funding activities. The Congressional Research Service documented Hamas’s request for cryptocurrency donations starting from at least 2019 in a December 2024 report. The report highlighted unknown factors regarding the general impact of these fundraising initiatives.

Blockchain analytics firm Chainalysis published in 2023 revealed that terrorist organizations make only limited use of cryptocurrency because they stick primarily to conventional financial approaches. Several U.S. government officials have expressed doubts regarding the necessity of additional oversight to stop misuse of digital assets.

Terrorism financing, cryptocurrency monitoring, and seizure operations will persist, according to statements made by the DOJ. The seized funds become part of larger initiatives aimed at disrupting extremist organizations by redirecting their financial base.