Officials with the U.S. Department of Justice said a court-authorized seizure of more than $200,000 in cryptocurrency will disrupt an ongoing Hamas funding scheme.
According to a press release from the DOJ, the office seized $201,400 in cryptocurrency held in wallets and accounts intended to benefit Hamas. The funds were traced from fundraising addresses controlled by Hamas that were later used to launder more than $1.5 million in virtual currency since October of last year.
“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,” U.S. Attorney Edward R. Martin Jr. for the District of Columbia said. “Hamas is responsible for the death of many U.S. and Israeli nationals, and we will stop at nothing to stop their campaign of terror and murder.”
According to court documents, a group chat claiming association with Hamas on an encrypted communications platform provided Hamas supporters worldwide with a set of 17 cryptocurrency addresses to donate funds to. These funds were then sent to an operational wallet and laundered through a series of virtual currency exchanges and transactions. Officials said more than a million dollars was raised and laundered using the cryptocurrency and money laundering system.
Officials said four accounts registered in the names of Palestinian individuals living in Turkey and elsewhere were seized, including one cryptocurrency address valued at $89,900 and three accounts containing cryptocurrency valued at approximately $111,500.
The case was investigated by the FBI Albuquerque Field Office in coordination with the FBI Counterterrorism Division and Cyber Division.
“Hamas raised and laundered more than a million dollars to support its terrorist operation, but through our investigation, the FBI traced and seized these funds,” Assistant Director David J. Scott of the FBI Counterterrorism Division said. “Disrupting funding mechanisms and seizing cryptocurrency from Hamas is one of the FBI’s many tools that we use 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.”