Hamas’ Adaptive Use of Cryptocurrency for Fundraising

Iran has been identified as a major financial backer of Hamas, providing the militant group with crucial resources to carry out acts of terrorism. However, investigators have uncovered another revenue source: online donors offering support in cryptocurrency. The US Justice Department has been pursuing a criminal investigation into Hamas’ use of cryptocurrency through alleged money launderers. It has been revealed that the investigation stems from Hamas-linked cryptocurrency accounts that the US government seized three years ago. Israeli authorities have also seized cryptocurrency accounts allegedly used by Hamas to collect donations during the recent conflict. Cryptocurrency addresses linked to Hamas seized by Israeli authorities received nearly $41 million between 2020 and 2023, according to reports. However, the total amount of cryptocurrency that Hamas has received is unclear. Hamas has used various methods to raise funds while evading sanctions, with its use of cryptocurrency representing just one of those methods. Alongside Iran, other ways in which Hamas has raised funds include donations through social media platforms such as Facebook and Twitter, informal taxes, and smuggling. The Weinstock family, whose son was murdered by Hamas terrorists in 1993, obtained a legal judgment of nearly $80 million against Hamas in 2019. They saw an opportunity to collect the money owed to them after the US Justice Department announced a crackdown on groups, including Hamas, that used cryptocurrency and social media to raise funds. However, progress on their case has been repeatedly delayed as government lawyers ask for more time to allow a related criminal investigation to proceed. The family’s lawyer expressed frustration that the Justice Department has indicated it will oppose allocating any of the forfeited assets to his clients.

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