U.S. Treasury Department Findings on Hamas Financing Network
In a recent announcement, the U.S. Treasury Department revealed significant findings regarding a financing network tied to Hamas, which functioned from 2020 until 2026. The network was managed by a member of Hamas’s military faction, Saleem Abdallah Saleem al-Zaq, located in Gaza, and he collaborated with fundraisers operating out of France, identified as Faouzi Barika and Amel Oualid.
Funding Details and Cryptocurrency Involvement
Treasury officials noted that over $2 million was raised for Hamas through this operation, with a substantial portion—approximately $1.5 million—raised following the October 7, 2023 assault on Israel. This funding strategy incorporated cryptocurrency, which was only a fraction of the total raised.
Barika and Oualid are reported to have transferred hundreds of thousands of dollars in various cryptocurrencies to al-Zaq, who is accused of channeling these funds to Hamas’s military wing, the Al-Qassam Brigades.
Allegations Against French Organizations
The Treasury also pointed to two organizations based in France, namely Association Baraka and Ensemble C Mieux, asserting that these entities claimed to be humanitarian charities aimed at helping civilians in Gaza. However, according to the Office of Foreign Assets Control (OFAC), the money they raised was allegedly redirected to support al-Zaq’s fundraising efforts, which he actively promoted on social media platforms.
Wider Trends and Regulatory Measures
This case highlights a wider trend showing the use of cryptocurrency as a tool for evading sanctions and facilitating illicit financial activities. The U.S. government has taken steps previously against companies like Garantex and Grinex, accusing them of engaging in cryptocurrency laundering and violations of sanctions.
Furthermore, new proposals for stablecoin regulations are expected to enforce stricter anti-money laundering and counter-terrorist financing measures on regulated entities based in the U.S.
