The US Justice Department has disrupted a cryptocurrency-based terrorist financing scheme linked to Hamas, seizing approximately $201,400 in USDT intended to support the militant group. The seized funds were traced from digital wallets used by Hamas, which reportedly laundered over $1.5 million in virtual currency since October 2024.

The operation, led by U.S. Attorney Edward R. Martin, Jr., and top officials from the Justice Department and FBI, targeted Hamas-affiliated fundraising channels on encrypted messaging platforms. Authorities revealed that a group chat associated with Hamas had been circulating at least 17 cryptocurrency addresses, encouraging global supporters to contribute funds.

The raised funds were funneled through multiple cryptocurrency wallets, exchanged across virtual currency platforms, and laundered using over-the-counter (OTC) brokers and suspected financiers. This network allegedly helped Hamas finance its operations while obscuring the origin and movement of the funds.‍

Government Officials React

US Attorney Martin emphasized the department’s commitment to cutting off financial resources to terrorist organizations.

“Hamas is responsible for the deaths of many US and Israeli nationals, and we will use every legal tool at our disposal to stop their campaign of terror and murder,” Martin said.

“These seizures are but one illustration of the determination of this office and the Department of Justice to shut off the flow of funds to this group, and to locate every cent intended to support their activities, no matter what form it takes.” 

Sue J. Bai, head of the Justice Department’s National Security Division, reaffirmed the DOJ’s stance against Hamas, while FBI Special Agent Raul Bujanda stressed that countering terrorism remains the agency’s top priority.

“This success demonstrates that financial warfare is a critical component to fight terrorism,” Bujanda stated, underscoring the importance of disrupting illicit funding channels.

Among the assets seized were cryptocurrency wallets containing approximately $89,900, along with three additional accounts holding digital assets valued at $111,500. The accounts were reportedly registered under Palestinian individuals based in Turkey and other locations.