2 days ago
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TLDR
- DOJ seized approximately $200,000 in cryptocurrency (USDT) intended to benefit Hamas
- Funds were traced from Hamas fundraising addresses that laundered over $1.5 million since October 2024
- A group chat on an encrypted platform provided Hamas supporters with at least 17 cryptocurrency addresses for donations
- Seized assets included cryptocurrency addresses valued at $89,900 and three accounts containing $111,500
- The accounts were registered to Palestinian individuals living in Turkey and elsewhere
The United States Department of Justice announced on March 27, 2025, that it has disrupted a terrorist financing operation by seizing approximately $200,000 in cryptocurrency intended to benefit Hamas. The seized digital assets were in the form of USDT, the world’s largest stablecoin by supply.
Federal authorities traced the funds from Hamas fundraising addresses that were allegedly controlled by the organization. These addresses were used to launder more than $1.5 million in virtual currency since October 2024, according to the DOJ press release.
U.S. Attorney for the District of Columbia, Edward R. Martin Jr., emphasized the government’s commitment to cutting off funding to Hamas. “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,” Martin stated.
The fundraising effort was coordinated through encrypted online communications. A group chat claiming association with Hamas operated on an encrypted platform to provide supporters worldwide with a changing set of cryptocurrency addresses.
Hamas supporters were encouraged to donate to at least 17 different cryptocurrency wallets. These donations were then funneled into a central operational wallet before being laundered through various means.
Tracing the Digital Money Trail
The laundering process involved a series of virtual currency exchanges and transactions. The operation leveraged suspected financiers and over-the-counter brokers to move the funds through the financial system.
Among the assets seized were cryptocurrency addresses valued at approximately $89,900. Additionally, three accounts containing cryptocurrency valued at approximately $111,500 were also confiscated by authorities.
The DOJ noted that these accounts were registered in the names of Palestinian individuals. These individuals were reportedly living in Turkey and other countries, though specific locations were not all disclosed.
Sue J. Bai, head of the Justice Department’s National Security Division, reiterated the government’s approach. “At Attorney General Pam Bondi’s direction, the Department of Justice is committed to dismantling Hamas using every tool at our disposal,” Bai said.
FBI Special Agent in Charge Raul Bujanda of the Albuquerque Field Office highlighted the importance of financial measures in counterterrorism. “By successfully disrupting access to these funds, we have weakened their ability to function,” he stated.
Bujanda further explained the FBI’s stance on financial warfare. “This success demonstrates that financial warfare is a critical component to fight terrorism,” he added.
The case was investigated by multiple FBI divisions. The Albuquerque Field Office worked in coordination with the FBI Counterterrorism Division and Cyber Division to trace and seize the assets.
Several attorneys are handling the prosecution of the case. Assistant U.S. Attorney Tejpal Chawla for the District of Columbia is working alongside Trial Attorney Jacques Singer-Emery from the National Security Division’s National Security Cyber Section.
Trial Attorney Jessica Joyce from the National Security Division’s Counterterrorism Section is also part of the prosecution team. The DOJ stated that the investigation remains ongoing.
This seizure is part of a broader effort to identify and disrupt Hamas’ attempts to use cryptocurrency for funding. Last year, the U.S. Treasury Department investigated $165 million in crypto transactions that allegedly supported Hamas before its October 7, 2023 attack on Israel.
That attack resulted in the deaths of approximately 1,200 people, including 40 American citizens. The current seizure represents the government’s continued focus on cutting off financial support to terrorist organizations regardless of the form those finances take.
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