Federal authorities have dismantled a sophisticated cryptocurrency network used by Hamas to fund terror operations. In an unprecedented move, law enforcement seized approximately $200,000 from 17 digital wallets linked to the terrorist organization. This operation marks another chapter in the ongoing cat-and-mouse game between terrorists and financial investigators.
Hamas first dipped its toes into crypto back in 2019. Not exactly breaking news that terrorists would embrace supposedly “anonymous” money transfers. The group’s military wing, Izz-Al Din-Al Qassam Brigades, brazenly solicited Bitcoin donations on Telegram before shifting operations to their own website, alqassam.net.
Big mistake. The Department of Justice infiltrated the site in 2020, secretly redirecting supporter funds to government-controlled wallets. Surprise! Your jihad donation just funded the FBI coffee machine.
The terrorist group diversified its crypto portfolio over time, embracing Bitcoin, Tether, Ether, Tron, and even Dogecoin. Really, Hamas? Dogecoin? The meme currency featuring a Shiba Inu? Terrorism has certainly evolved.
Israel’s National Bureau for Counter Terror Financing hasn’t sat idle either. They seized dozens of cryptocurrency addresses with millions in transaction volume, targeting Gaza-based businesses like Dubai Co. For Exchange that served as fronts.
By July 2021, Hamas-linked wallets had received over $7.3 million in cryptocurrency. During one week of conflict in May 2021, Bitcoin donations surged to $73,000. Following Hamas’ October 7, 2023 attack, fundraising group GazaNow received nearly $800,000 in cryptocurrency before suspending public operations.
Still, crypto remains a smaller piece of Hamas’ financing puzzle compared to the estimated $100 million annually provided by Iran. This substantial financial backing allows Hamas to maintain a secret investment network worth approximately $500 million across the Middle East.
The Treasury Department recently sanctioned Buy Cash Money and Money Transfer Company, a Gaza-based outfit facilitating transfers for multiple terrorist groups. Its owner, Ahmed M. M. Alaqad, earned himself a spot on international sanctions lists.
Hamas actually announced a hiatus in crypto fundraising earlier this year, acknowledging their vulnerability to blockchain tracing. Turns out the “untraceable” digital currency isn’t so untraceable after all. Whoops.
The feds’ message is clear: blockchain isn’t the terrorist haven some thought it would be.
