A recent investigation led by the FBI’s New Mexico field office has uncovered a major cryptocurrency funding ring used to support Hamas, resulting in the seizure of $201,400 in digital assets. The operation, which has been traced back to fundraising addresses controlled by Hamas, has been active since October 2024, laundered more than $1.5 million in cryptocurrency.
The U.S. Justice Department confirmed that these assets were connected to a sophisticated network that Hamas used to finance its activities. Court documents revealed that the funds were funneled through multiple cryptocurrency addresses provided to global supporters via a Telegram group, encouraging donations to the militant group.
“These seizures highlight our relentless pursuit of every dollar flowing to Hamas, regardless of its form,” said U.S. Attorney Edward R. Martin. 
Documents also disclosed that certain accounts were registered under the names of Palestinian individuals residing in countries like Turkey. Further investigations showed that the methods Hamas used to launder cryptocurrency had evolved over the years. In 2019, Hamas’s military wing, the Al Qassam Brigades, openly claimed Bitcoin donations were untraceable, but by 2023, the group adjusted its tactics to avoid detection due to growing scrutiny.
Hamas’s strategy now involved careful instructions for supporters to avoid using specific platforms like Binance, with an emphasis on remaining anonymous in financial transactions. Emails and messages were used to direct crypto donations, providing a safer method for contributors while trying to evade regulatory control.
Sue J. Bai, head of the U.S. Justice Department’s National Security Division, emphasized the agency’s commitment to dismantling Hamas’s financial network using all available resources.
This investigation surfaces amid ongoing debates in the U.S. over the role of cryptocurrency in funding illegal activities. As the U.S. government continues to define its stance on crypto, particularly under the Trump administration, tensions grow regarding the balance between regulation and the unregulated sector’s potential for abuse. Crypto supporters, particularly aligned with Trump, have pushed for fewer restrictions, while critics remain concerned about the untraceable nature of digital assets and their appeal to groups like Hamas.
