The U.S. Treasury Department has imposed sanctions on several individuals and organizations involved in a network that raised over $2 million for the militant group Hamas, utilizing cryptocurrency and alleged humanitarian donations.
Details of the Fundraising Network
According to the Treasury, this network raised these funds between 2020 and 2026, with $1.5 million collected following Hamas's attack on Israel on October 7, 2023. The funds were reportedly funneled through purported charitable organizations and included significant amounts sent in cryptocurrency.
The Treasury identified Faouzi Barika and Amel Oualid, who were based in France, as key figures in this operation. They allegedly collected money under the guise of humanitarian efforts, subsequently transferring it to Hamas, which has been designated a terrorist organization by various countries and has controlled the Gaza Strip since 2007.
While the network is said to have raised over $2 million, the Treasury noted that it was unclear if the entire amount was transmitted in cryptocurrency. However, it highlighted that Barika and Oualid sent hundreds of thousands of dollars in crypto to Saleem Abdallah Saleem al-Zaq, a deputy commander in Hamas’s Al-Qassam Brigades based in Gaza.
Consequences of the Sanctions
The sanctions freeze the assets of the designated individuals and organizations within U.S. jurisdiction, prohibit American entities from conducting business with them, and place foreign financial institutions that facilitate significant transactions at risk of penalties.
Scott Bessent, the Treasury Secretary, commented, "Terrorist organizations like Hamas rely on sophisticated financial facilitators and fraudulent schemes designed to exploit the public." This crackdown illustrates the U.S. government's ongoing scrutiny of cryptocurrency's role in broader fundraising and payment networks, rather than viewing it as the primary source of funding for Hamas.
Previously, Treasury officials have indicated that Hamas continues to depend mainly on traditional financing methods, despite previous sanctions related to cryptocurrency. This comes after reports revealed that the Al-Qassam Brigades had instructed donors to avoid using certain crypto platforms like Binance, opting instead for other services before transferring funds to a TRON wallet.