Justice Department seizes over $560,000 in cryptocurrency donations for Hamas

Sep 1, 2026

On September 1, 2026, the U.S. Department of Justice and the FBI announced the seizure of over $560,000 in cryptocurrency donations intended for Hamas and its military wing, the Al-Qassam Brigades. Investigators also seized fundraising domains, communication servers, and identified thousands of prospective donors. Despite Hamas's public 2023 claim that it had halted crypto fundraising, evidence shows the group continued soliciting USDT stablecoins through encrypted platforms and rotating wallet networks.

DOJ cryptocurrency seizures from Hamas

▪U.S. federal investigators seized approximately $201,400 in March 2025 from a network of rotating cryptocurrency wallets that had moved over $1.5 million since late 2024
▪The U.S. Department of Justice filed a civil forfeiture complaint in July 2025 targeting approximately $2 million in digital currency connected to the Gaza-based business Buy Cash Money and Money Transfer Company and its owner, Ahmed M.M. Alaqad
▪The U.S. Department of Justice and the FBI announced the seizure of more than $560,000 in cryptocurrency donations intended for Hamas and its military wing, the Al-Qassam Brigades, on September 1, 2026

Hamas crypto fundraising methods

▪The primary token involved across multiple Hamas cryptocurrency fundraising cases was USDT, a stablecoin issued by Tether
▪Hamas began testing virtual currency fundraising in or around early 2019 through its Al-Qassam Brigades, soliciting donations on its Telegram channel and offering instructions for anonymous donations
▪Hamas-linked fundraising networks utilized rotating wallet addresses and cycled funds through a rapid series of accounts to obscure the money trail before cashing out

Blockchain transaction tracing capabilities

▪The FBI's Albuquerque Field Office traced USDT flows back to Hamas-linked accounts by analyzing and connecting rotating wallets to a single Hamas-affiliated operation
▪Blockchain analytics firms Chainalysis and TRM Labs developed tools to cluster cryptocurrency addresses by behavior, identify exchange deposit accounts, and map transaction graphs

Hamas false fundraising halt claim

▪Hamas publicly announced in 2023 that it was halting cryptocurrency fundraising due to pressure from exchanges and blockchain analytics firms
▪U.S. Department of Justice operations revealed that Hamas continued to solicit digital donations through encrypted platforms well after its public 2023 announcement

FBI cyber investigation operations

▪The FBI obtained information about thousands of individuals who contacted Hamas with the intention of donating money to the militant group
▪A major investigative break occurred when a U.S.-based confidential source alerted law enforcement to a Telegram post soliciting donations to an email address associated with Hamas
▪The U.S. Department of Justice seized control of Hamas's internet infrastructure, including fundraising domains, servers, and communication platforms used for recruitment

Stablecoin compliance scrutiny

▪The repeated use of USDT in Hamas fundraising cases is expected to increase regulatory scrutiny on cryptocurrency exchanges and wallet providers handling the stablecoin
▪Tether has previously frozen cryptocurrency addresses linked to illicit activity when presented with requests from law enforcement