FBI seizes over $200,000 in crypto linked to Hamas terror financing

The U.S. Federal Bureau of Investigation (FBI) has seized more than $200,000 in cryptocurrency from wallets and exchange accounts tied to the Palestinian militant group Hamas. The Department of Justice (DOJ) made the disclosure on Thursday, March 27, 2025. The operation marks a significant step in the U.S. government’s ongoing efforts to disrupt terrorist financing networks that exploit digital currencies to fund their activities.

According to the DOJ, the seized funds, amounting to about $201,400, are just a fraction of a larger sum exceeding $1.5 million in crypto that has flowed through the targeted accounts since October 2024. The FBI alleges that these funds, primarily in the form of donations from Hamas supporters worldwide, were funnelled through at least 17 cryptocurrency wallets and several exchange accounts.

The wallet addresses were reportedly promoted in an encrypted group chat claiming affiliation with Hamas, a group designated as a terrorist organisation by both the United States and the European Union.

The seizure included approximately $90,000 from an undisclosed number of digital wallets and an additional $112,000 from three exchange accounts. The FBI noted that most of these accounts were registered to Palestinian individuals residing in Turkey and other undisclosed locations. The funds were allegedly laundered through a sophisticated network of crypto exchanges, brokers, and over-the-counter transactions, highlighting the challenges law enforcement faces in tracking illicit financial flows in the digital age.

U.S. Attorney Edward R. Martin Jr. of the District of Columbia emphasised the government’s resolve in combating such financing schemes.

“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,” Martin said in a statement. “Hamas is responsible for the deaths of many U.S. and Israeli nationals, and we will stop at nothing to stop their campaign of terror and murder.”

The operation was led by the FBI’s Albuquerque Field Office in collaboration with the agency’s Counterterrorism and Cyber Divisions and is being prosecuted by the DOJ’s National Security Division alongside the U.S. Attorney’s Office for D.C.

FBI Special Agent in Charge Raul Bujanda underscored the strategic importance of the seizure, stating, “This success demonstrates that financial warfare is a critical component in fighting terrorism. By disrupting access to these funds, we have weakened Hamas’ ability to function.”

Hamas using crypto to circumvent financial monitoring systems

The use of cryptocurrency by Hamas is not entirely new. According to the U.S. Treasury Department, the group has leveraged digital currencies since at least 2020 to move money discreetly, circumventing traditional financial monitoring systems and the risks associated with transporting physical cash. This tactic has become increasingly prevalent as global authorities tighten sanctions and crack down on conventional funding channels.

The seizure aligns with broader international efforts to dismantle Hamas-linked financial networks. In January 2024, the U.S. Treasury’s Office of Foreign Assets Control, in coordination with counterparts in the United Kingdom and Australia, imposed sanctions on facilitators of Hamas-related crypto transactions.

Additionally, Israel’s National Bureau for Counter Terror Financing (NBCTF), part of the country’s Defence Ministry, has been a key player in this fight. In April 2023, the NBCTF seized nearly 200 crypto accounts linked to Palestinian currency exchanges suspected of supporting Hamas. A report by blockchain analytics firm TRM Labs indicates that the NBCTF has confiscated “tens of millions” of dollars in crypto from Hamas-affiliated accounts over recent years.

Despite these efforts, the scale of Hamas’ crypto fundraising remains difficult to fully quantify. A December 2024 Congressional Research Service report noted that while the group has sought digital donations since at least 2019, the “scale and effectiveness” of these operations are unclear. The DOJ’s latest action suggests that, while significant, the $1.5 million traced through the seized accounts may represent only a portion of Hamas’ broader financial activities.

Blockchain technology, while offering anonymity to illicit actors, also provides a transparent ledger that law enforcement can exploit. The traceability of transactions enabled authorities to follow the money trail from encrypted chats to operational wallets, ultimately leading to the seizure. This duality underscores cryptocurrency’s role as both a tool for terrorists and a means for their detection.

The DOJ’s announcement comes amid heightened U.S. focus on countering terrorism financing, with the recently formed Joint Task Force October 7 (JTF 10-7) tasked with investigating Hamas’ actions, including its October 7, 2023, attack on Israel. As the FBI continues to embed agents with international partners like Israel’s NBCTF, such operations signal a sustained commitment to choking off the financial lifelines of designated terrorist organisations.

While the $201,400 seizure is a tactical victory, experts caution that it is a small piece of a larger puzzle. Hamas’ ability to adapt its fundraising methods, shifting from cash to crypto and employing rotating wallet addresses, poses an ongoing challenge. Nevertheless, the DOJ and FBI’s actions reaffirm their determination to pursue every avenue in disrupting terror financing, leveraging both technology and international cooperation to hold groups like Hamas accountable.