US Treasury Sanctions Hamas Crypto Fundraising Network
The US Treasury has sanctioned a Hamas-linked fundraising network accused of collecting more than $2 million through cryptocurrency and purported humanitarian donations between 2020 and 2026. Treasury said about $1.5 million was raised after Hamas’s 7 October 2023 attack on Israel.
The network allegedly involved Gaza-based Al-Qassam Brigades member Saleem Abdallah Saleem al-Zaq, France-based fundraisers Faouzi Barika and Amel Oualid, and two France-based organisations, Association Baraka and Ensemble C Mieux. Hundreds of thousands of dollars in cryptocurrency were allegedly transferred to al-Zaq, who reportedly directed funds to Hamas’s military wing.
The sanctions freeze assets under US jurisdiction, prohibit US persons from dealing with the designated parties and may expose foreign financial institutions to secondary sanctions. Treasury officials said traditional finance remains Hamas’s main funding channel, despite its use of crypto.
The action increases compliance pressure on crypto exchanges, stablecoin providers, charities and blockchain-monitoring firms. However, the Hamas crypto case is unlikely to create a major direct effect on broad cryptocurrency prices. Traders should instead monitor enforcement activity, wallet screening and potential restrictions on crypto donations and payment networks.
Neutral
The immediate price impact is likely to be neutral because the sanctions target specific entities and wallets rather than a major cryptocurrency or blockchain network. Treasury also indicated that traditional finance remains Hamas’s main funding channel, reducing the likelihood of a broad crypto-market shock.
In the short term, exchanges, stablecoin providers and compliance-focused blockchain firms may face increased monitoring, wallet-screening costs and transaction restrictions. Traders could briefly react to headlines with risk aversion, but similar sanctions announcements have generally had limited and temporary effects on broad crypto prices.
Over the longer term, tougher enforcement may raise compliance costs and reduce the use of crypto in illicit fundraising. It could also strengthen regulatory scrutiny of privacy tools, stablecoin transfers and crypto donations. These developments may affect particular services or wallets, but they do not by themselves create a clear bullish or bearish catalyst for the wider cryptocurrency market.