A joint investigation by French and U.S. authorities has revealed that Hamas used cryptocurrency and fake humanitarian organizations to fund its terrorist activities. The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) identified a network that transferred over $2 million to Hamas through deceptive charitable fronts and cryptocurrency channels. The network included a Gaza-based Hamas military wing member, Saleem Alzaq, who oversaw the financial operations, and two France-based individuals, Faouzi Barika and Amel Oualid, who ran sham charities to raise funds.
Barika and Oualid collected over $2 million, including $1.5 million after the October 7 massacre, and transferred hundreds of thousands of dollars in cryptocurrency to Alzaq. The Treasury accused Barika of establishing the Baraka Association and Oualid of creating Ensemble C Mieux, both of which were used to solicit donations for Hamas. The French National Anti-Terrorism Prosecutor’s Office (PNAT) charged five individuals, including Barika, with financing terrorism, breach of trust, and money laundering.
The investigation highlights the evolving tactics of Hamas in evading detection through cryptocurrency and fake charities. The U.S. Treasury designations block the targets’ property in the U.S. but leave gaps, such as the inability to freeze euro-denominated accounts or identify the network’s cryptocurrency wallets. Despite the charges, Association Baraka’s website remained active, asking for donations through PayPal and contact with a Gaza-based individual on social media platforms.
Experts note that while cryptocurrency plays a role in Hamas’s fundraising, conventional finance remains the primary funding source. The investigation underscores the persistent challenge of tracking and disrupting terrorist financing networks that adapt to evade detection.