The US Department of Justice (DOJ) has unraveled $200,000 worth of crypto linked to financing Palestine-based Hamas.
The justice department revealed seizing crypto valued at $200,000 remitted to Hamas via multiple digital wallets previously involved in moving $1.5 million since October last year.
Key Highlights
- DOJ intercepts and seizes USDT worth $200,000 that would have benefitted Hamas
- The DOJ traced the funds as funneled via addresses involved in past fundraising and laundering of $1.5 million since October 2024.
- The operation unraveled group chat conveyed in an encrypted channel to the Hamas supporters with 16 addresses listed to receive donations.
- The DOJ team seized assets from three accounts holding $111,500 and another $89,900 from the addresses.
- The accounts seized were linked to Palestinians residing in Turkey
The United States Department of Justice revealed in its March 27 statement discovering a terrorist financing chain leading to a $200,000 seizure destined for the Palestine-based terrorist group Hamas. The regulatory agency revealed the seized digital assets were in USDT, the global largest stablecoin in supply.
Cutting Off Hamas Funding
The Federal authorities confirmed tracing the USDT funds to the addresses used in fundraising for Hamas. Federal officers in the operation acknowledge the extensive involvement of the addresses as over $1.5 million have been laundered via them since October 2024.
The Columbia District Attorney Edward Martin Jr. reiterated the US government’s devotion to intercepting and cutting off Hamas funding. The seizures illustrate that the office is committed to extending to search each cent intended to fund Hamas. The attorney indicated their devotion to pursuing each cent and payment form intended for Hamas.
The terrorist group coordinated the fundraising via encrypted communications. In particular, a group chat affiliated with the Hamaswase behind platform operations meant to offer the terrorist group supporters a coordinated set of crypto addresses.
The communication urged the Hamas supporters to donate to over 17 crypto wallets. The group would later funnel the donations into a centralized operational wallet before laundering the funds via various means.
Tracking Digital Money Trail
The Justice Department has outlined a coordinated tracing of the money trail targeting the laundering process comprising several transactions and crypto exchanges. The team scrutinized suspected financiers and over-the-counter brokers in moving funds via the financial system.
The operation has seen over $201,000 assets seized in crypto assets holding $89,900. The authorities have confiscated an additional $111,500 from three accounts. The DOJ observed that the accounts registration carried Palestinian names. The team further noted that the individuals behind the accounts allegedly reside in Turkey and other countries, though they have yet to disclose their locations.
The DOJ head of the National Security Division, Sue Bai, affirmed the US government approach. He indicated the resolve by the DOJ to dismantle Hamas as directed by Attorney General Pam Bondi using all tools at its disposal.
Coordinated Financial Warfare
The special agent from the FBI, Raul Bujanda, noted the essence of financial measures to bolster counterterrorism. The agent from the Albuquerque Field Office added the successful disruption to accessing the funding will weaken the terrorist group’s capability to function.
Bujanda assured the FBI’s firm stance on the financial warfare. He hailed coordinated financial warfare as bringing success and critical towards fighting terrorism. Besides the Albuquerque Field Office, the case involved several FBI divisions, including counterterrorism and cyber units, tracing and seizing digital assets.
The statement highlighted the involvement of several attorneys to prosecute the case. The District of Columbia assistance attorney Tejpal Chawla teamed up with Jacques Singer-Emery from the National Security Division’s cyber. While the DOJ profiles the investigation as ongoing, it noted the input of Jessica Joyce from the Counterterrorism unit.
The seizure of the $200,000 funding is part of the US government’s efforts to identify, disrupt, and weaken Hamas by cutting off crypto financing. The operation forms part of the Treasury Department investigation of $165M remittance in crypto transactions to support Hamas before staging the October 7, 2023 terror attack on Israel. The attack led to 1,200 deaths, among them 40 US citizens.
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