The U.S. Department of Justice (DOJ) has announced the confiscation of digital assets connected to Hamas, marking a significant step in a joint operation by the FBI and Internal Revenue Service (IRS) aimed at disrupting terrorist financing networks.

Details of the Seizure

According to the DOJ, the seized crypto assets were held across multiple cryptocurrency wallets associated with Hamas’s military wing, Harakat al-Muqawamah al-Islamiyya. These wallets had reportedly been used since October 2024 to launder over $1.5 million in virtual currencies.

The funds were stored in accounts registered under the names of Palestinian nationals residing in Turkey and other countries. The operation led to the seizure of Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) worth approximately $201,400.

Crypto Used for Crowdfunding Terrorism

The DOJ explained that Hamas utilized these wallets as part of global online fundraising campaigns, with donations pouring in from around the world in response to calls for financial support published on social media platforms and encrypted messaging apps.

“This operation is part of our ongoing commitment to dismantle terror funding channels and hold those who assist such organizations accountable,” the DOJ stated.

Broader Legal Implications

The seizure comes amid heightened global scrutiny of how cryptocurrencies can be exploited for illicit purposes. It follows recent lawsuits filed by three Israeli families affected by the October 7, 2023, Hamas attack on Israel, who have sued Binance, along with the governments of Syria and Iran, for allegedly facilitating terrorist financing.

This action reinforces the growing cooperation between U.S. law enforcement and financial watchdogs in identifying and shutting down crypto-based funding for extremist groups.