Justice Department Disrupts Hamas Terrorist Financing Scheme Through Seizure of Cryptocurrency

The Justice Department announced the disruption of an ongoing terrorist financing scheme through the seizure of approximately $201,400 (based on current value) in cryptocurrency held in wallets and accounts intended to benefit Harakat al-Muqawama al-Islamiyya (Hamas). The seized funds were traced from Hamas fundraising addresses, purportedly controlled by Hamas, that were used to launder more than $1.5 million in virtual currency since October 2024.

The action was announced by U.S. Attorney Edward R. Martin, Jr., Sue J. Bai head of the Justice Department’s National Security Division, and FBI Special Agent in Charge Raul Bujanda of the Albuquerque Field Office. 

As alleged in court documents, a group chat claiming association with Hamas on an encrypted communications platform provided Hamas supporters, worldwide, with a changing set of at least 17 cryptocurrency addresses. Supporters were encouraged to donate money to those addresses. Those funds were sent into an operational wallet and laundered through a series of virtual currency exchanges and transactions by leveraging suspected financiers and over-the-counter brokers. More than a million dollars were raised and laundered using the laundering system and the virtual currency accounts described in the affidavit.

“Hamas is responsible for the deaths of many U.S. and Israeli nationals, and we will use every legal tool at our disposal to stop their campaign of terror and murder,” said U.S. Attorney Martin. “These seizures are but one illustration of the determination of this office and the Department of Justice to shut off the flow of funds to this group, and to locate every cent intended to support their activities, no matter what form it takes.” 

“At Attorney General Pam Bondi’s direction, the Department of Justice is committed to dismantling Hamas using every tool at our disposal,” said Sue J. Bai, head of the Justice Department’s National Security Division.   

“Countering terrorism remains the FBI’s number one priority. By successfully disrupting access to these funds, we have weakened their ability to function,” said FBI Special Agent in Charge Bujanda, of the Albuquerque Field Office. “This success demonstrates that financial warfare is a critical component to fight terrorism. We will continue to do everything in our power to protect the American people and pursue justice by depriving terrorist organizations of the resources they need to continue their illicit activity.”

Included among the assets seized were cryptocurrency addresses valued at approximately $89,900, and three additional accounts containing cryptocurrency valued at approximately $111,500. These accounts were registered in the names of Palestinian individuals living in Turkey and elsewhere.

This case was investigated by the Federal Bureau of Investigation (FBI) Albuquerque Field Office in coordination with the FBI Counterterrorism Division (CTD) and Cyber Division (CyD). It is being prosecuted by Assistant U.S. Attorney Tejpal Chawla for the District of Columbia, Trial Attorney Jacques Singer-Emery for the National Security Division’s National Security Cyber Section, and Trial Attorney Jessica Joyce for the National Security Division’s Counterterrorism Section.