United States Seizes $2M in Crypto from Hamas-Linked BuyCash Network

The United States has unsealed a civil forfeiture action targeting approximately $2 million in cryptocurrency linked to a Gaza-based money transfer business that financially supported Hamas and other designated terrorist groups. The move signals an intensifying crackdown by US authorities on the use of digital currencies to fuel extremist activity.

The civil complaint, filed by the Department of Justice and the US Attorney’s Office for the District of Columbia, names Buy Cash Money and Money Transfer Company (BuyCash), its owner Ahmed M. M. Alaqad, and accounts held with major crypto platforms Tether and Binance. According to the government, BuyCash and Alaqad were instrumental in a financial support network aiding multiple terrorist organisations, including Hamas, ISIS, and Al-Qaida affiliates.

Targeting Terrorist Financing in the Digital Age

The forfeiture action underscores the increasing relevance of digital currencies in counter-terrorism enforcement. As crypto’s popularity grows, so too does its exploitation by illicit actors seeking to bypass conventional financial controls. By seizing funds held in Tether and Binance accounts, US authorities are sending a strong message that crypto will not be permitted to serve as a safe haven for terrorist financing.

“Terrorist organisations like Hamas and their affiliates rely on shadowy financial networks to fund their deadly operations,” said Attorney General Pamela Bondi. “By seizing millions in cryptocurrency, the Justice Department is aggressively dismantling the financial infrastructure of terrorism.”

The complaint outlines how BuyCash users channelled funds through digital currency platforms to conceal the true beneficiaries of their transactions. One account reportedly received over $4 million before and after Hamas’s October 2023 attacks on Israel.

A Pattern of Support for Extremism

The investigation, led by the FBI’s Washington D.C. Field Office, points to a sustained pattern of support for terrorism dating back to 2017. That year, BuyCash was used to procure online infrastructure for ISIS. In 2019, it facilitated payments from an Al-Qaida affiliate and enabled fiat currency transfers to individuals known to support Hamas. More recently, in June 2021, Israeli authorities seized digital wallets linked to the Izz-al-Din Qassam Brigades — Hamas’s military wing — some of which were connected to BuyCash.

Following the 2023 Hamas attacks, both BuyCash and Alaqad were formally designated by the US Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, marking them as key facilitators of terrorism financing.

Legal Action & Civil Forfeiture

Civil forfeiture is a powerful enforcement tool in the United States, allowing the government to seize assets involved in criminal activity even without a criminal conviction. In this case, the action targets accounts already seized from Binance and Tether, aiming to disrupt terrorist financing flows at their digital source.

The legal team leading the case includes Assistant US Attorneys Rajbir S. Datta and Thomas Saunders, supported by specialists from the Justice Department’s Money Laundering and Asset Recovery Section and National Security Division.

While civil forfeiture complaints consist of allegations rather than proven facts, the burden is now on the government to demonstrate the assets’ connection to terrorism-related activities.

A Broader Warning to the Crypto Sector

This case highlights the persistent vulnerability of crypto exchanges and stablecoin issuers to abuse by terrorist networks. It also serves as a warning to financial technology companies: due diligence and robust anti-money laundering controls are non-negotiable in today’s regulatory landscape.

For law enforcement agencies and compliance professionals alike, the BuyCash case illustrates the evolving complexity of digital financial crime and the need for continued collaboration across jurisdictions to combat terrorist financing effectively.

As the financial world grows more decentralised, so too must its defences against those who seek to misuse innovation to spread violence and chaos.

Read the press release here.