In a significant move to curb terrorist financing, the U.S. and the U.K. have imposed sanctions on Gaza Now, a media channel accused of raising funds for Hamas following the October 7 attack in Israel. The sanctions also extend to Mustafa Ayash, the founder of Gaza Now, and additional individuals and entities linked to these fundraising efforts. This development highlights the growing concern over the use of cryptocurrencies in supporting terrorist activities.
The Crackdown on Cryptocurrency Fundraising
The Office of Foreign Asset Control (OFAC) of the U.S. Treasury Department, alongside the U.K.’s Office of Foreign Sanctions Implementation, announced these sanctions in a concerted effort to dismantle financial networks supporting Hamas. These sanctions include the listing of several cryptocurrency addresses used by Ayash and Gaza Now to gather funds. This action represents a continuation of efforts to target financial facilitators working with Hamas, including a Gaza-based crypto exchange sanctioned in October 2023.
The Scale of Crypto Contributions
Despite the focus on these fundraising activities, the amount raised through cryptocurrencies remains relatively modest. Blockchain analytics firm Elliptic discovered that Gaza Now amassed only $21,000 in crypto donations in the aftermath of the October 7 incident. Similarly, TRM Labs, another blockchain research entity, reported that the majority of terrorist-linked donations via cryptocurrency are small, with three-quarters being under $500. Yet, the choice of Tether (USDT) on the TRON blockchain has surged among terrorist financiers, attributed to its lower transaction costs and perceived difficulty in tracing.
International Cooperation Against Terrorism Financing
Brian E. Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the U.S. commitment to undermining Hamas’ financial capabilities, including online fundraising efforts aimed at directly supporting the group’s terrorist actions. This joint U.S.-U.K. initiative underscores the international commitment to leveraging every available tool to disrupt the financial channels that enable terrorist groups like Hamas to plan and execute further attacks.
