The U.S. Justice Department has seized more than $560,000 in cryptocurrency intended for Hamas and taken control of domains and servers used by the militant group to raise money and recruit supporters, according to court documents released Wednesday.
Market Context
The operation marks one of the most significant government actions targeting cryptocurrency fundraising for designated terrorist organizations. The DOJ released five affidavits accompanying the announcement: three covering crypto warrants from March 25, June 25, and October 10 of 2025 that account for the $560,000 in seizures, while two additional filings dated July 29 and August 18, 2026 cover the infrastructure seizures.
Analysis
FBI agents specifically targeted the domain Aqassam.ps and seized servers to intercept donations meant for Hamas's military wing, the Al-Qassam Brigades. Investigators utilized human intelligence sources to identify and trace rotating cryptocurrency addresses that were promoted through encrypted group chats and a fundraising website. The operation provided authorities with data on thousands of individuals who contacted Hamas-linked platforms seeking to donate via both crypto and traditional payment methods.
The first action recovered approximately $201,400 from wallets and accounts linked to a system that had moved more than $1.5 million since October 2024, according to the DOJ's earlier statements. Court documents allege these addresses were controlled on behalf of the Al-Qassam Brigades, enabling authorities to follow the money trail across multiple transactions.
The seizure demonstrates how law enforcement agencies are increasingly combining traditional intelligence-gathering methods with blockchain analytics to track cryptocurrency flowing to sanctioned entities. By taking control of fundraising infrastructure rather than merely targeting individual wallets, investigators gained visibility into the broader network of potential donors.
Key Numbers
- $560,000+ in total cryptocurrency seized by the DOJ
- Approximately $201,400 recovered from initial warrant action
- $1.5 million+ in total system movement since October 2024
- Thousands of individuals identified through fundraising platform contacts
- Five affidavits released covering both crypto warrants and infrastructure seizures
What to Watch
The DOJ's use of targeted crypto warrants and domain seizure strategies may set precedent for future enforcement against sanctioned groups' cryptocurrency operations. Investigators will likely continue analyzing the donor network data collected during the operation, potentially leading to additional seizures or prosecutions. The success in tracing rotating addresses through human intelligence suggests authorities are overcoming previous challenges with privacy-focused wallet practices.
The case highlights ongoing tensions between cryptocurrency's pseudonymous nature and government efforts to prevent terror financing, with implications for how exchanges and wallet providers handle transactions linked to sanctioned entities.