US Treasury Imposes Sanctions on Gaza Crypto Exchange Linked to Hamas
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions on a cryptocurrency exchange in Gaza that is involved in fundraising for Hamas. The targeted exchange, known as Buy Cash, operates from Gaza and is accused of facilitating terror financing activities. In June 2021, Israel’s National Bureau for Counter Terrorist Financing seized several crypto wallets connected to a Hamas fundraising campaign, including one belonging to Buy Cash Money and Money Transfer Company. Since the recent conflict between Hamas and Israel, Israeli authorities have seized numerous crypto accounts and millions of dollars worth of crypto associated with terror financing.
OFAC Sanctions Financial Collaborators Associated With Hamas
In addition to the crypto exchange, OFAC has extended its sanctions to include ten key members and financial collaborators linked to Hamas. These individuals are located in countries such as Algeria, Sudan, Turkey, and Qatar. The US Treasury Department’s action reflects the growing concern over illicit funding channels that exploit cryptocurrencies for terrorist activities. Any assets or interests in property held by the designated individuals within the United States or under the control of US persons are now frozen and must be reported to OFAC. Entities owned by these blocked individuals are also subject to sanctions.
Enforcement Action for Engaging With Sanctioned Platforms
OFAC’s regulations generally prohibit transactions involving property associated with designated or blocked persons unless authorized by a license issued by OFAC or granted an exemption. Financial institutions and other entities must take note of these sanctions as they may face severe consequences if they engage in transactions or activities with the sanctioned entities and individuals. This includes providing funds or services to designated persons or receiving contributions or resources from them.
Hot Take: Disrupting Terror Financing Through Crypto Sanctions
The US Treasury’s imposition of sanctions on a Gaza-based crypto exchange and individuals associated with Hamas demonstrates the commitment to disrupt terror financing networks that exploit cryptocurrencies. By freezing assets and prohibiting transactions, these actions aim to prevent the flow of funds to support terrorist activities. This move highlights the need for increased vigilance within the cryptocurrency industry and financial institutions to ensure compliance with anti-money laundering and counter-terrorist financing measures. As cryptocurrencies continue to gain popularity, governments and regulatory bodies must remain proactive in addressing potential risks and vulnerabilities that can be exploited by illicit actors.
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