US Seizes Hamas Cryptocurrency in Major Terrorist Financing Crackdown

The United States Justice Department has successfully disrupted a major Hamas terrorist financing operation by seizing over $200,000 in cryptocurrency intended to support the group’s activities. This significant counterterrorism action highlights the evolving intersection of financial crime and digital currency, as extremist groups continue to exploit decentralised systems to mask illicit fundraising.

Acting under court authority, the Department confiscated approximately $201,400 traced back to Hamas-controlled cryptocurrency wallets. These wallets, which formed part of a wider digital fundraising network, had allegedly laundered more than $1.5 million in virtual assets since October 2024. The funds flowed through at least 17 unique crypto addresses shared via encrypted group chats targeting global supporters.

The crackdown forms part of a broader federal strategy to neutralise terrorist threats through financial disruption. FBI agents tracked the transactions through a complex laundering chain involving over-the-counter brokers and suspected financiers, ultimately seizing wallets registered to individuals based in Turkey and other locations.

Senior officials stressed the importance of undermining terrorist access to funding. “Disrupting Hamas’ cryptocurrency pipeline sends a clear message—there is no safe haven for terror financing in the digital space,” said Sue J. Bai, head of the National Security Division. FBI Assistant Director David J. Scott reinforced that these efforts are “one of the FBI’s many tools in the fight against terrorism.”

This case underscores a growing trend: the use of virtual currencies by sanctioned groups to sidestep traditional banking systems. As the FBI intensifies its cyber investigations, this seizure signals a robust capability to trace, intercept and dismantle digital terror financing networks.

With Hamas officially designated as a Foreign Terrorist Organisation by the United States, this operation represents a landmark moment in financial counterterrorism. As cryptocurrencies grow in popularity, such enforcement actions are expected to play an increasingly critical role in safeguarding global security.

Read the press release here.