The U.S. Department of Justice (DOJ) has just announced the seizure of $201,400 in cryptocurrency suspected to be used for funding the armed group Hamas. This is part of a campaign to tighten control over digital money flows related to terrorist funding.


Hamas Financial Crackdown Campaign


According to #DOJ , law enforcement agencies have taken control of a cryptocurrency wallet worth $89,900 and three other accounts with a total of $111,500. These wallet addresses were found to be involved in crypto money laundering, raising over $1.5 million for Hamas since October 2024.


Mr. Edward R. Martin Jr., the district attorney for Columbia, asserted: 'We will trace every penny used to fund Hamas, no matter where it is and in what form of currency.'


Crypto - A Money Laundering Tool for Armed Groups?


Since the 2010s, many criminal organizations and armed groups have leveraged blockchain technology to conceal financial transactions. However, in recent years, U.S. authorities have intensified crackdowns on this activity, making it difficult for those who want to exploit crypto to fund banned organizations.


The DOJ revealed that an encrypted chat group linked to Hamas facilitated supporters sending money to at least 17 cryptocurrency wallet addresses. Donors and some decentralized exchanges (#OTC ) were involved in this money laundering process.


Nevertheless, the DOJ has not publicly disclosed the identities of the exchanges that were used to carry out the aforementioned money laundering activities.


FBI and Israel Tighten Control


This recent crypto seizure campaign against Hamas involved coordination with the FBI Albuquerque Office. Mr. David J. Scott, Director of the FBI's Counterterrorism Division, emphasized: 'Disrupting funding channels and seizing cryptocurrency is one of our key tools in the fight against terrorism.'


Not only the U.S., but #Israel has also taken many steps to prevent the use of cryptocurrency to fund #Hamas . According to Reuters, from 2021 to 2023, Israel's counter-terrorism agency seized dozens of digital asset accounts related to Hamas and two other accounts linked to the ISIS organization (Daesh).


Is Crypto Still a Safe Option for Underground Funding?


Although cryptocurrency was once viewed as an anonymous financial tool, with increasingly stringent controls from the U.S. government and allied nations, exploiting crypto to fund armed organizations is becoming increasingly difficult.


Will these groups continue to find ways to circumvent the law using more sophisticated methods? Or will blockchain monitoring systems render cryptocurrency an ineffective tool for underground funding? This remains a significant question in the battle between technology and global security.