US Sanctions Hamas-Linked Network Over $2M Crypto and Charity Scam
The US Treasury has sanctioned a network that moved over $2 million to Hamas using fake charities and cryptocurrency channels.
The United States government has taken decisive action against a sophisticated financial web used to funnel millions of dollars to Hamas. In a major crackdown, the US Department of the Treasury announced sanctions against a member of Hamas's military wing, two individuals based in France, and two affiliated entities for operating a multi-year financing network that moved more than USD 2 million to the militant group through deceptive charitable fronts and cryptocurrency.
The Office of Foreign Assets Control (OFAC) revealed that this operation exposed a complex architecture designed to exploit public sympathy and digital assets to sustain terrorist operations.
A Multi-Million Dollar Deception
According to the Treasury Department, the scheme operated over a six-year period between 2020 and 2026. A staggering USD 1.5 million of the total funds were collected following the October 7, 2023, Hamas attack on Israel. The network utilized a mix of traditional money services and modern digital wallets to bypass standard financial scrutiny.
“Terrorist organisations like Hamas rely on sophisticated financial facilitators and fraudulent schemes designed to exploit the public to sustain their operations,” stated US Treasury Secretary Scott Bessent. He emphasized that the Treasury will continue to isolate those providing the financial lifelines necessary for Hamas to survive.
Key Figures and Entities Targeted
The US crackdown identified several key players involved in the movement of funds:
- Saleem Abdallah Saleem al-Zaq: A Gaza-based battalion deputy in Hamas's military wing. Beyond his military role, al-Zaq reportedly worked as a photographer for the Hamas media office. He is accused of overseeing the network and using cryptocurrency wallets to transfer funds to the Al-Qassam Brigades.
- Faouzi Barika & Amel Oualid: Two France-based individuals accused of running fake charities. They allegedly raised funds under the guise of providing humanitarian assistance to civilians in Gaza, only to divert the money to al-Zaq.
- Association Baraka: A France-based entity established by Barika and al-Zaq to solicit public donations.
- Ensemble C Mieux: A France-based entity established by Oualid, used similarly to raise and transfer funds.
Coordinated Law Enforcement Effort
This action was not an isolated event but part of a massive, multi-jurisdictional operation. The Federal Bureau of Investigation (FBI) led the effort to dismantle these fundraising ventures, which included activities operating within the United States. The Treasury worked closely with local law enforcement, including the New York Police Department (NYPD), to disrupt these financial nodes.
The investigation revealed that the process was highly digital; Barika and Oualid sent hundreds of thousands of dollars in cryptocurrency to al-Zaq, who in turn used his social media presence to advertise the fundraising accounts, effectively weaponizing social platforms to recruit donors.
Legal Consequences and Sanctions
Under US counterterrorism sanctions authority, all property and interests in property belonging to the designated individuals that are within the US or controlled by US persons are now blocked. Furthermore, any entity owned 50 percent or more by these blocked persons is also subject to sanctions.
The Treasury warned that US persons are generally prohibited from engaging in any transactions involving these blocked entities. Violations of these sanctions can lead to severe civil or criminal penalties for both US and foreign individuals.