US Justice Department seizes over $200K in cryptocurrency intended for terrorism financing

The US Justice Department successfully intercepted over $200,000 in cryptocurrency linked to terrorism financing efforts supporting Harakat al-Muqawama al-Islamiyya (Hamas). This action disrupted a wider fundraising scheme utilizing multiple channels, including direct donations via cryptocurrency addresses shared in alleged group chats. This tactic has resulted in several previous asset freezes.

The investigation, a collaborative effort between the FBI Albuquerque Field Office, the FBI Counterterrorism Division, and the FBI Cyber Division, was overseen by US Attorney General Pam Bondi. Confidential human sources provided crucial leads. The identified Hamas-linked addresses showed a total turnover of $1.5 million since October 2024.

Assistant Director David J. Scott of the FBI Counterterrorism Division stated, “Hamas raised and laundered more than a million dollars to support its terrorist operations, but through our investigation, the FBI traced and seized these funds. Disrupting funding mechanisms and seizing cryptocurrency from Hamas is one of the FBI’s many tools 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.”

While the seized amount is relatively small compared to traditional fiat currency funding, it demonstrates the US authorities' commitment to tracking all potential financing channels. The seizure also disrupted communication and further fundraising efforts.

Fundraising addresses were disseminated through encrypted communication platforms, primarily Telegram group chats. The scheme employed a rotating list of at least 17 wallets to receive donations. Funds were laundered through cryptocurrency exchanges, mixing transactions, and swaps via over-the-counter (OTC) brokers. Over $1 million was raised and laundered using this system. Seized wallets contained approximately $89,900 in remaining assets, with three additional accounts holding $111,500. These accounts were registered to Palestinian individuals residing in Turkey and other countries.

Eliptic previously identified Hamas-related addresses with a turnover of up to $7.7 million. While cryptocurrency represents a relatively small portion of overall terrorist financing in recent years, blockchain traceability and cooperation from cryptocurrency exchanges have proven invaluable in tracking funds and identifying involved individuals.

Due to the sensitive nature of these addresses, they are not publicly disclosed and are tracked by specialized on-chain investigators. Funds were sent to Ethereum, BNB Smart Chain, and TRON wallets, with some donations made via Dogecoin (DOGE). Previous cases have also documented the use of TRON for similar purposes. One identified fundraiser's address contained only $49.75 in Bitcoin (BTC), with minimal activity and no recent transactions. Challenges remain, however, as the speed of cryptocurrency transactions and the lack of cooperation from some protocols hinder the complete interception of funds.

Telegram has banned multiple channels suspected of facilitating terrorism financing, yet Hamas-themed groups continue to reappear and openly publish content. Previous cases often involved smaller-scale donations, with some known wallets containing minimal cryptocurrency. This recent disruption represents a small fraction of the broader landscape of cryptocurrency-related illegal activities.