The US Department of Justice Targets Terrorist Financing
The US Department of Justice recently announced a significant operation targeting terrorist financing, seizing approximately $200,000 worth of cryptocurrency. This amount was linked to financing schemes associated with Hamas.
According to the official statement, the cryptocurrencies were deposited in several wallets and accounts used to benefit the organization. The investigation revealed that these funds came from fundraising campaigns, allegedly controlled by Hamas, which served to launder more than US$1.5 million in virtual currency since October 2024.
The virtual currency in question was USDT, one of the most widely used stablecoins globally, issued by Tether. These values were identified and tracked through complex transactions involving several cryptocurrency wallets.
Additional details provided by the DOJ indicated that a group claiming affiliation with Hamas on an encrypted communications platform directed supporters to funnel funds into more than a dozen cryptocurrency wallets. These funds were then transferred to an operational wallet and laundered through exchanges and transactions on a number of cryptocurrency platforms, involving suspicious financiers and over-the-counter brokers.
The move is part of a broader effort to cut off sources of funding for terrorist activities that leverage the anonymity of cryptocurrencies. About a year ago, the U.S. Treasury Department launched an investigation into $165 million in cryptocurrency transactions that allegedly benefited Hamas ahead of the Oct. 7, 2023, attack on Israel that resulted in an estimated 1,200 deaths, including 40 U.S. citizens.