DOJ ‘disrupts Hamas terrorist’ scheme by seizing crypto held in USDT

The U.S. Department of Justice said it has disrupted a "Hamas terrorist financing scheme" with the seizure of about $200,000 of cryptocurrency.The DOJ said the seized cryptocurrency was being "held in wallets and accounts intended to benefit" Hamas, according to a press release. "The seized funds were traced from Hamas fundraising addresses, purportedly controlled by Hamas, that were used to launder more than $1.5 million in virtual currency since October 2024."The roughly $200,000 in seized crypto was in USDT, the world's largest stablecoin by supply, which is issued by Tether.According to the DOJ, a group "claiming association with Hamas on an encrypted communications platform" had been directing Hamas supporters to donate money to more than a dozen crypto wallets, the release said. "Those funds were sent into an operational wallet and laundered through a series of virtual currency exchanges and transactions by leveraging suspected financiers and over-the-counter brokers."Identifying and disrupting Hamas' attempts to use cryptocurrency to fund terrorist activity has been ongoing.Roughly a year ago, the U.S. Treasury Department announced it was investigating $165 million in crypto transactions processed through U.S. institutions that allegedly supported Hamas before its October 7, 2023, attack on Israel, which killed approximately 1,200 people, including 40 American citizens.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.