The U.S. Department of Justice has confiscated more than $560,000 in cryptocurrencies linked to Hamas, the organization designated as a terrorist group, along with its military branch, the al-Qassam Brigades.
Court Issues Ruling for Crypto Fund Seizure
As announced on September 1 in a statement, a federal court has empowered the FBI to take possession of these assets. The ruling also permits the agency to disrupt all communication methods the organization utilized to raise funds from its supporters.
The investigations, as detailed in FBI affidavits, commenced in March 2025 and extended to August 2026. The initial seizure involved around $200,000 in stablecoins, setting off a broader inquiry.
A map illustrates how donors transferred amounts to a specific wallet, from which Hamas moved these resources to an operational wallet. This wallet was linked to numerous other cryptocurrency addresses across mainstream exchanges, over-the-counter (OTC) desks, money mules, and various intermediate wallets, pointing to a large-scale and organized money laundering scheme.
Moreover, the organization tried to implement various methods to hide their activity following the early 2025 seizure of stablecoins. These tactics included transferring assets between networks and using one-time donation wallets.
The Ultimate Forfeiture
Eventually, the agency established links as several cryptocurrency addresses were reused during fundraising efforts. A designated gas wallet was also identified, utilized for covering transaction fees across all operations.
Source: Chainalysis
Subsequent investigations led to the shutdown of websites and servers connected to the group’s fundraising and support activities. During this phase, the FBI successfully intercepted funds heading towards the donation address, as well as identifying donor information.
The FBI aims to leverage insights gained from this operation to aid in future investigations into similar terrorist financing and illegal funding strategies on blockchain platforms.
Did you find this article useful?
End of Article
Trust in CoinPedia:
Since 2017, CoinPedia has provided accurate and timely updates on cryptocurrency and blockchain. All content is crafted by our panel of expert analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Each article is verified with reliable sources to guarantee accuracy and transparency. Our review policies ensure impartial assessments when suggesting exchanges, platforms, or tools. We aim to provide the latest developments surrounding the crypto and blockchain sectors, covering everything from startups to major players.
Investment Disclaimer:
The views expressed are solely the author’s opinions regarding current market conditions. We encourage you to conduct thorough research before making any investment decisions. Neither the author nor the publication is liable for your financial actions.
Sponsored Content and Advertisements:
Our site may display sponsored material and affiliate links. Advertisements are clearly marked, and our editorial content remains completely independent from our advertisers.
Explore the Next News