U.S. Treasury Sanctions Hamas Funding Network Accused of Routing $2M via Crypto

The U.S. Treasury on Oct. 2 sanctioned a Hamas financing network it says transferred more than $2 million to the group using sham charities and cryptocurrency wallets, according to the Office of Foreign Assets Control (OFAC). The move, part of a multi-jurisdictional operation led by the FBI, targets a Gaza-based deputy in Hamas's military wing, two France-based fundraisers, and the two charities they operated. OFAC designated Saleem Abdallah Saleem alZaq, identified as a battalion deputy in Hamas's AlQassam Brigades. Treasury said alZaq oversaw a financial network that relied on money services businesses and cryptocurrency wallets to channel funds to Hamas. Treasury also said alZaq worked as a photographer for Hamas's media office and attended official events near senior officials, describing it as evidence of a trusted role. The sanctions also name Faouzi Barika and Amel Oualid, accused of running purported charities in France, along with the entities they controlled: Association Baraka and Ensemble C Mieux. Treasury said that from 2020 through 2026, Barika, Oualid and alZaq raised more than $2 million for Hamas, including about $1.5 million after the Oct. 7, 2023 attack on Israel. Treasury alleged the two fundraisers sent hundreds of thousands of dollars in cryptocurrency to alZaq, who then funneled the proceeds to the AlQassam Brigades. Treasury said alZaq also amplified the fundraisers' donation accounts on his own social media. "Terrorist organizations like Hamas rely on sophisticated financial facilitators and fraudulent schemes designed to exploit the public to sustain their operations," Treasury Secretary Scott Bessent said. "Treasury will continue to identify, isolate, and impose consequences on those who provide Hamas with the financial lifelines it needs to survive." The action adds to a series of U.S. cases linking cryptocurrency to sanctions evasion. Treasury pointed to this week's designation of the Tren de Aragua network accused of laundering ATM heist proceeds through crypto, as well as an earlier seizure of $560,000 in crypto tied to Hamas. The designations were issued under Executive Order 13224, as amended. They block any U.S.-based assets of the named individuals and entities, and Treasury warned that foreign financial institutions that knowingly facilitate significant transactions for them could face secondary sanctions.