US Sanctions French Entities for Crypto Funds to Hamas
The US government has expanded its sanctions against Hamas by targeting two French charities and three individuals for allegedly facilitating cryptocurrency transfers to the militant group. On October 2, the Treasury Department's Office of Foreign Assets Control (OFAC) added Association Baraka, Ensemble C Mieux, Faouzi Barika, Amel Oualid, and Saleem Abdallah Saleem al-Zaq to its sanctions list. The move requires crypto exchanges and payment firms under US jurisdiction to screen these entities.
Treasury officials claim that Barika and Oualid, both based in France, sent hundreds of thousands of dollars in cryptocurrency to al-Zaq, identified as a Gaza-based deputy battalion commander in Hamas’ military wing. The two fundraisers and their associated organizations allegedly collected over $2 million for Hamas between 2020 and 2026, though not all of this amount was transferred using digital assets.
The sanctions extend US efforts to disrupt Hamas financing networks, which now include tracing digital-asset transfers alongside traditional banking and cash-based channels. Crypto firms must block any property in which the sanctioned parties have an interest, including assets held by companies owned 50% or more by blocked persons. OFAC treats digital assets under the same sanctions framework as fiat currency.
US-regulated crypto companies must deny access to frozen assets and report them to OFAC within 10 business days. The sanctions also warn foreign financial institutions about secondary sanctions for facilitating significant transactions for the designated parties. The next challenge for crypto firms will be identifying additional wallet addresses or entities tied to the sanctioned network, which could broaden the screening burden.