US Sanctions Hamas Supporters for $2 Million Crypto and Charity Scheme
The US Treasury's Office of Foreign Assets Control (OFAC) has sanctioned three individuals and two charities for allegedly moving over $2 million to Hamas using cryptocurrencies and sham charities.
The accused individuals are Saleem al-Zaq, a Hamas military wing member, and France-based fundraisers Faouzi Barika and Amel Oualid, who run the charities Association Baraka and Ensemble C Mieux.
OFAC claims that Barika and Oualid raised money through their charities, claiming to support civilians in Gaza, and then transferred hundreds of thousands of dollars in digital assets to al-Zaq.
Al-Zaq allegedly used these funds to support the Al-Qassam Brigades, the armed wing of Hamas, and the Treasury describes the scheme as a 'sophisticated, multi-year financing architecture' that used 'deceptive charitable fronts and cryptocurrency channels' to evade detection.
The Justice Department has also unsealed charges against al-Zaq and announced six arrests.
Chainalysis, a blockchain investigator, identified connections between the accused individuals and their crypto transactions, tracing the flow of funds from French bank accounts to digital wallets and exchanges.