FBI Seizes Over $200K in Crypto Linked to Hamas Terror Financing

The U.S. Federal Bureau of Investigation (FBI) has seized more than $200,000 in cryptocurrency tied to the Palestinian militant group Hamas, a U.S. and EU-designated terrorist organization. According to a statement released Thursday, the confiscated assets were traced to multiple wallets and exchange accounts allegedly used to collect and launder donations supporting Hamas.

Since October 2023, over $1.5 million in crypto has flowed through these wallets, much of it raised from international supporters via addresses promoted in Hamas-affiliated chat groups. The FBI stated that the funds were then moved through a network of crypto exchanges in an attempt to obscure their origin.

U.S. Attorney Edward R. Martin Jr. emphasized the government's determination, saying, “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.”

The FBI detailed that approximately $90,000 was taken directly from crypto wallets, while another $112,000 was seized from three exchange accounts registered to Palestinian individuals based in Turkey and other locations.

Efforts to disrupt Hamas' crypto-based financing are not new. The U.S. Treasury and international partners have previously sanctioned networks aiding Hamas, while Israel’s National Bureau for Counter Terror Financing (NBCTF) has confiscated tens of millions in crypto from related accounts. In April 2023, the NBCTF seized nearly 200 crypto accounts connected to Palestinian exchanges.

The U.S. Treasury has tracked Hamas' use of cryptocurrency since at least 2020, citing its appeal in evading surveillance and reducing risks tied to physical cash transfers.

The crackdown highlights growing global efforts to combat terror financing through digital assets.