Western Nations Sanction Crypto Facilitators Linked to Hamas

• Global Financial Blacklist Adds Hamas-Affiliated Financiers
• Cryptocurrency Utilized by Hamas
• Details of the Sanctions
• Hamas and Illicit Fund Transfers

Global Financial Blacklist Adds Hamas-Affiliated Financiers

The Office of Foreign Asset Control (OFAC) in the U.S., along with the governments of U.K. and Australia, have taken decisive action against financial facilitators linked to Hamas, according to an announcement made by the Treasury Department's sanctions watchdog. These entities and individuals, accused of aiding in both crypto and non-crypto transactions for Hamas, are now barred from the global financial system.

Cryptocurrency Utilized by Hamas

As per Brian Nelson, U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, one of the financial transfer mechanisms employed by Hamas involves the use of cryptocurrency. Our authorities will persist in targeting Hamas, its financiers, and its international financial infrastructure, in close coordination with our allies and partners, Nelson stated.

Details of the Sanctions

No specific crypto addresses were included in the Specially Designated Nationals list, which is atypical for crypto sanctions. Rather, the press release referred to actions taken by Israel's National Bureau for Counter Terror Financing (NBCTF). The NBCTF has frozen 189 crypto addresses tied to three exchanges, one of them being Al-Markaziya Li-Siarafa. This Gaza and Turkiye-based company, owned by Zuhair Shamlakh, is implicated in providing support for Hamas through crypto and fiat via its companies.

Another involved party, Herzallah Exchange and General Trading Company LLC, has also been suspected of facilitating both crypto and non-crypto transactions for Hamas.

Hamas and Illicit Fund Transfers

The press release elaborates on how Hamas has utilized various methods for transferring funds illicitly from Gaza to the West Bank to support recruitment and weapon procurement. It reveals that the terrorist group has directly co-opted and utilized some corrupt money exchanges in both West Bank and Gaza to launder funds.

Starting from at least 2020, the group has been using cryptocurrency to transfer funding to cover operational costs in the West Bank. This has been seen as a means to mitigate the risks of physically moving cash, bypass border crossings, and evade monitoring by authorities.

Edited by Jonathan Stoker