TLDR
- DOJ seized approximately $200,000 in USDT cryptocurrency intended to benefit Hamas
- Funds were traced from Hamas fundraising addresses that laundered over $1.5 million since October 2024
- At least 17 cryptocurrency addresses were identified in the scheme
- The operation used encrypted communications to direct supporters to donate to multiple crypto wallets
- Seized assets included wallets valued at $89,900 and three accounts containing about $111,500
The Investigation Unfolds
The U.S. Department of Justice has announced the disruption of a “Hamas terrorist financing scheme” through the seizure of approximately $200,000 worth of cryptocurrency. The operation targeted digital assets being held in wallets and accounts allegedly intended to benefit Hamas, a designated terrorist organization.
The seized funds were primarily in USDT, the world’s largest stablecoin by supply. USDT is issued by Tether and maintains a value pegged to the U.S. dollar, making it a stable option for transferring value.
According to the DOJ’s March 27 press release, investigators traced these funds from Hamas fundraising addresses. These addresses were reportedly controlled by Hamas and used to launder more than $1.5 million in virtual currency since October 2024.
Communication Channels
The fundraising effort was coordinated through encrypted online communications platforms. A group chat claiming association with Hamas provided supporters worldwide with access to at least 17 cryptocurrency addresses for donations.
These donation addresses changed regularly to avoid detection. Money sent to these addresses was then funneled into a central operational wallet for further processing.
From the operational wallet, the funds were laundered through a series of virtual currency exchanges. The process involved suspected financiers and over-the-counter brokers to obscure the money trail.
The DOJ revealed specific details about the seized assets. This included cryptocurrency addresses valued at approximately $89,900 in total.
An additional three accounts containing cryptocurrency valued at approximately $111,500 were also seized. These accounts were registered in the names of Palestinian individuals living in Turkey and other locations.
Ongoing Counterterrorism Efforts
Edward R. Martin Jr., the U.S. Attorney for the District of Columbia, emphasized the determination of authorities.
“These seizures show that this office will search high and low for every cent of money going to fund Hamas, wherever it is found, and in whatever form of currency,” he stated.
Martin added, “Hamas is responsible for the death of many U.S. and Israeli nationals, and we will stop at nothing to stop their campaign of terror and murder.”
This operation is part of ongoing efforts to combat terrorist financing through cryptocurrency channels. The investigation remains active as authorities continue to track additional connections.
This is not the first time U.S. authorities have targeted cryptocurrency financing linked to Hamas. About a year ago, the U.S. Treasury Department launched an investigation into $165 million in crypto transactions.
Those transactions were allegedly processed through U.S. institutions in support of Hamas before its October 7, 2023 attack on Israel. That attack resulted in approximately 1,200 deaths, including 40 American citizens.
The current seizure demonstrates the continued focus of U.S. law enforcement on disrupting terrorist financing. Authorities are specifically targeting the use of cryptocurrency as a means to fund terrorist activities.
The DOJ has not released information about how they initially identified the cryptocurrency addresses. However, the successful tracing of funds shows the increasing capabilities of law enforcement in tracking digital assets.
The court-authorized seizure was described as an interdiction of cryptocurrency intended to support terrorist activities. This legal basis allowed authorities to take control of the digital assets.
Experts note that while cryptocurrency transactions provide some anonymity, they also create permanent records on blockchain networks. This creates both challenges and opportunities for investigators tracking illicit finance.
The seizure comes amid wider international efforts to prevent terrorist organizations from using cryptocurrency. Financial authorities worldwide are working to implement stronger regulations around digital asset transfers.
The investigation into this Hamas financing network continues. Authorities have indicated they are pursuing additional leads related to the cryptocurrency fundraising operation.
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