The U.S. Treasury Imposes Sanctions on Hamas for Terrorist Attack
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has implemented a fifth set of sanctions on Hamas following a terrorist attack on Israel. The Treasury Department announced that it has imposed additional sanctions on Hamas in response to the attack that occurred in October 2023.
New Sanctions Target Hamas-Affiliated Exchanges and Financial Facilitators
The latest sanctions focus on networks of Hamas-affiliated exchanges in Gaza, their owners, associates, and financial facilitators involved in fund transfers, including cryptocurrency transfers, from the Islamic Revolutionary Guard Corps-Qods Force to Hamas and Palestinian Islamic Jihad in Gaza. The Treasury revealed that Hamas utilized various methods, including cryptocurrencies, to transfer funds from Gaza to the West Bank.
Identified Exchanges Involved in Money Transfers
The Herzallah Exchange and General Trading Company LLC, owned by Muhammad Fallah Kamil Hirzallah, Na’im Kamil Raghib Hirzallah, and Salah Kamil Raghib Hirzallah, have been identified as facilitating transactions using cryptocurrencies. Additionally, Samir Herzallah and Brothers For Money Exchange and Remittances (known as Samir Exchange) have also worked with Hamas to facilitate money transfers.
“Hamas has sought to leverage a variety of financial transfer mechanisms, including the exploitation of cryptocurrency, to channel funds to support the group’s terrorist activities.”
– Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence
Cryptocurrencies Used Not Specified
The report does not specify which cryptocurrencies were used by the exchanges to facilitate financial transactions. In coordination with the U.K. and Australia, the U.S. authorities have also imposed sanctions on key Hamas officials and facilitators.
Israeli Police Block Hamas Crypto Accounts
Following the attack by Hamas, the cyber unit of Israel Police’s Lahav 433 took action to block crypto accounts belonging to the group. Reports suggest that Israel instructed Binance to locate and shut down the accounts on its platform. Lahav 433 also requested the U.K. police to block a Hamas-related account in Barclays Bank.
Hot Take: U.S. Treasury Implements Sanctions on Hamas for Exploiting Cryptocurrencies
The U.S. Department of the Treasury has imposed additional sanctions on Hamas for utilizing cryptocurrencies to fund its terrorist activities. The latest round of sanctions targets Hamas-affiliated exchanges, their owners, associates, and financial facilitators involved in transferring funds from the Islamic Revolutionary Guard Corps-Qods Force to Hamas and Palestinian Islamic Jihad in Gaza. This move highlights the growing concern over the exploitation of cryptocurrencies for illicit purposes. While specific cryptocurrencies used were not disclosed, it is clear that regulatory authorities are taking action against those involved in facilitating these transactions. The coordinated efforts between the U.S., U.K., and Australia demonstrate a global commitment to combatting terrorism financing through cryptocurrency channels.
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