SKN | Treasury Crackdown Highlights Crypto’s Role in a $2 Million Hamas Financing Network

Key Points:

• U.S. Treasury officials identified a multi-year fundraising network that moved more than $2 million to Hamas through purported charitable organizations and cryptocurrency channels.
• More than $1.5 million was raised after October 7, 2023, with hundreds of thousands of dollars sent in cryptocurrency, according to Treasury.
• The action reinforces the importance of blockchain analytics, sanctions screening and compliance infrastructure as regulators expand scrutiny of digital-asset financial flows.

The U.S. Treasury Department’s latest sanctions action has highlighted how cryptocurrency can be incorporated into sophisticated illicit-finance networks, while also demonstrating the increasing ability of authorities to trace blockchain transactions. Treasury said a fundraising network linked to Hamas moved more than $2 million between 2020 and 2026 through purported humanitarian charities and cryptocurrency channels, creating another compliance test for the expanding digital-asset industry.

Crypto Was One Component of a Broader Network

The Treasury’s Office of Foreign Assets Control designated Hamas military-wing member Saleem Abdallah Saleem al-Zaq, along with France-based individuals Faouzi Barika and Amel Oualid and affiliated entities. Treasury said the network operated through purported charitable organizations that claimed to raise funds for humanitarian purposes but instead transferred money to al-Zaq, who then funneled funds to Hamas.

Between 2020 and 2026, the network collected more than $2 million, including approximately $1.5 million after the October 7, 2023 Hamas attack on Israel. Treasury said Barika and Oualid sent hundreds of thousands of dollars in cryptocurrency to al-Zaq. The figures show that crypto was an important channel within the broader fundraising structure rather than the entirety of the network’s financing activity.

Blockchain Transparency Creates Both Risks and Tools

The case illustrates a structural tension for digital assets. Cryptocurrency can move across borders without traditional banking intermediaries, potentially making it attractive to illicit actors seeking alternative payment channels. At the same time, public blockchains create transaction records that can be analyzed and linked to wallets, exchanges and other financial infrastructure.

Treasury has repeatedly emphasized that transparency can assist investigations. Its 2026 National Terrorist Financing Risk Assessment notes that U.S. financial institutions had filed 642 Suspicious Activity Reports containing a key term from a 2023 Hamas-financing advisory, as of January 28, 2026. The assessment also documented previous cases involving digital assets, including a 2025 seizure of approximately $201,400 intended to benefit Hamas.

Compliance Is Becoming a Core Crypto Infrastructure Layer

For crypto businesses, the implications extend beyond the specific wallets identified by Treasury. Exchanges, custodians, stablecoin issuers and payment providers increasingly need systems capable of detecting sanctioned addresses, identifying suspicious transaction patterns and maintaining appropriate AML and sanctions controls.

This is particularly relevant as digital assets become more integrated with conventional finance. Institutional adoption depends not only on liquidity and custody but also on demonstrating that blockchain-based payment and settlement networks can operate within established financial-crime controls. Treasury’s actions therefore reinforce the commercial importance of compliance providers and blockchain analytics firms as the sector expands.

Regulatory Pressure Is Likely to Continue

The latest action also fits a broader pattern. Treasury has previously sanctioned Hamas-linked financial facilitators and cryptocurrency channels, including networks involving Gaza-based exchanges and money-transfer businesses. In January 2024, Treasury said Hamas had used cryptocurrency to transfer some funding while attempting to reduce the risks associated with physical cash movement and monitoring.

For crypto investors and institutions, the important issue is how effectively the industry can demonstrate that transparent blockchain infrastructure can coexist with rigorous financial controls. The latest Treasury action does not establish that crypto is the primary source of Hamas financing; rather, it shows that digital assets can form part of increasingly complex cross-border networks. As regulators intensify enforcement, the ability of exchanges, custodians and blockchain networks to identify and disrupt illicit flows will remain an important component of crypto’s broader institutionalization.