Over $200K in Crypto Linked to Hamas Terror Financing Seized by US DOJ

On 27 March, the US Department of Justice (DOJ) announced the interception of over $200,000 in cryptocurrency tied to terrorism financing.

These funds were intended for the Palestinian militant group Harakat al-Muqawama al-Islamiyya (Hamas).

The DOJ revealed that the seizure disrupted a broader fundraising effort that utilised encrypted channels to collect and transfer donations.

The operation was spearheaded by the FBI's Albuquerque Field Office, Counterterrorism Division, and Cyber Division, under the direction of US Attorney General Pam Bondi.

According to the DOJ, the identified wallets, active since October 2024, had processed over $1.5 million through a network of virtual currency exchanges and brokers.

Assistant Director David J. Scott of the FBI Counterterrorism Division said:

“Hamas raised and laundered more than a million dollars to support its terrorist operation, but through our investigation, the FBI traced and seized these funds.”

He added:

“Disrupting funding mechanisms and seizing cryptocurrency from Hamas is one of the FBI’s many tools that we use in the fight against terrorism. The FBI will work with our partners to dismantle this terrorist group and protect the American people from their violent and horrific acts.”

Although the seized funds, amounting to $201,400, were modest compared to traditional fiat channels, this operation underscores the growing efforts by US authorities to track and halt all forms of terrorism financing, effectively dismantling the communication and donation networks behind such schemes.

Fundraising Campaigns Leverage Telegram for Growth

Fundraising for terrorism has increasingly relied on encrypted platforms, with group chats on platforms like Telegram distributing lists of at least 17 rotating cryptocurrency wallets for donations.

The funds raised were laundered through crypto exchanges, mixing services, and over-the-counter brokers.

Over $1 million was funnelled through this system before being tracked by authorities.

Seized wallets contained approximately $89,900 in assets, with additional funds found in three other accounts, totalling $111,500.

These accounts were registered under Palestinian individuals living in Turkey or other countries.

Previous investigations by Elliptic have traced Hamas-related addresses with turnovers reaching up to $7.7 million.

While cryptocurrency remains a small funding source for terrorist activities compared to traditional methods, blockchain traceability, and cooperation from exchanges have proven essential in tracking both funds and individuals involved.

Despite efforts to monitor and freeze accounts, funds often move too quickly for swift intervention, and not all protocols are willing to cooperate with authorities.

Although Telegram has banned several channels linked to terrorism financing, Hamas-related groups continue to resurface and organize, using new methods to evade detection.