DOJ Reports Major Crypto Seizure in Hamas Financing Operation

The U.S. Department of Justice announced a significant crypto seizure operation today, intercepting approximately $201,400 in cryptocurrency from wallets linked to Hamas, the Palestinian militant group designated as a terrorist organization by the U.S. government.

According to the DOJ’s March 27, 2025 press release, the seized funds were part of a larger financial network that has raised and laundered more than $1.5 million in virtual currency since October 2024. The operation represents a growing trend of law enforcement agencies targeting cryptocurrency as a means to disrupt terrorist financing.

Justice Department Disrupts Hamas Terrorist Financing Scheme Through Seizure of Cryptocurrency https://t.co/cg1kVE7kSS@USAEdMartin @FBIAlbuquerque pic.twitter.com/7fl3SY8G0N

— U.S. Attorney DC (@USAO_DC) March 27, 2025

Inside the Crypto Seizure Investigation

FBI investigators discovered that Hamas supporters were using an encrypted group chat platform to distribute cryptocurrency wallet addresses. The group provided supporters with at least 17 different cryptocurrency addresses that changed over time, creating a complex money movement system designed to avoid detection.

The seized assets included cryptocurrency addresses valued at about $89,900 and three additional accounts containing approximately $111,500. These accounts were registered to Palestinian individuals residing in Turkey and other locations.

“Hamas raised and laundered more than a million dollars to support its terrorist operation, but through our investigation, the FBI traced and seized these funds,” said Assistant Director David J. Scott of the FBI Counterterrorism Division in the press release.

How Terrorist Groups Use Cryptocurrency

The seizure highlights the sophisticated methods terrorist organizations now employ to fund their operations. In this case, Hamas supporters collected funds through multiple cryptocurrency addresses before moving them to operational wallets.

From there, the funds were laundered through several virtual currency exchanges and transactions, using suspected financiers and over-the-counter brokers to hide the money trail.

This type of financial operation allows terrorist groups to receive funding from supporters worldwide while attempting to conceal the source and destination of the money.

“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,” said U.S. Attorney Edward R. Martin Jr. for the District of Columbia.

The case is being investigated by the FBI Albuquerque Field Office in coordination with the FBI’s Counterterrorism Division and Cyber Division. It’s being prosecuted by Assistant U.S. Attorney Tejpal Chawla for the District of Columbia, along with Trial Attorneys from the National Security Division’s National Security Cyber Section and Counterterrorism Section.

The operation comes as part of the Justice Department’s broader efforts to disrupt terrorist financing networks and demonstrates the increasing importance of financial warfare in counterterrorism strategy.