The U.S. Treasury Department’s sanctions watchdog has revealed that the U.S., U.K., and Australia are collectively taking action against several financiers associated with Hamas by including them in a global financial blacklist. The Office of Foreign Asset Control (OFAC), alongside Australian and British authorities, is blocking individuals and entities accused of aiding Hamas in conducting both crypto and non-crypto transactions within the global financial system.
U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, highlighted that Hamas utilises cryptocurrency among various financial transfer methods for its support. He emphasised the commitment to using authorities in collaboration with allies to target not only Hamas but also its financiers and international financial infrastructure.
Unlike typical crypto sanctions that involve specific crypto addresses, no such addresses were added to the Specially Designated Nationals list. Instead, a press release pointed to the freezing of 189 crypto addresses by Israel’s National Bureau for Counter Terror Financing (NBCTF), associated with three exchanges. One of these exchanges, Al-Markaziya Li-Siarafa, owned by Zuhair Shamlakh, a Gaza and Turkiye-based company, was implicated in providing support for Hamas through both crypto and fiat transactions. The Herzallah Exchange and General Trading Company LLC were also identified as facilitators of crypto and other transactions for Hamas.
The press release further explained that Hamas has employed various illicit methods to transfer funds from Gaza to the West Bank, supporting recruitment and weapons purchases. The terrorist group has allegedly co-opted corrupt money exchanges in both regions to launder funds. Additionally, since at least 2020, Hamas has reportedly utilised cryptocurrency to transfer funding, aiding operational costs in the West Bank and mitigating risks associated with physical cash movement, border crossings, and monitoring by authorities.