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The U.S. Department of Justice said on Sept. 1 that federal investigators had seized more than $560,000 in cryptocurrency allegedly destined for Hamas and taken control of online infrastructure used for fundraising and recruitment.
Three covered cryptocurrency seizures carried out on March 25, June 25 and Oct. 10, 2025, while two later warrants, dated July 29 and Aug. 18, 2026, targeted domains and servers authorities said were controlled by the Al Qassam Brigades, Hamas’ military wing.
The Justice Department’s announcement describes allegations contained in warrant affidavits. It does not constitute a criminal conviction against people associated with the cryptocurrency addresses, accounts or servers identified during the investigation.
According to federal authorities, investigators relied partly on information supplied by human sources to identify a fundraising system that circulated changing cryptocurrency addresses through an encrypted group chat and a website.
Supporters were allegedly directed to send money to different addresses, potentially making attribution more difficult without eliminating the underlying blockchain transaction history.
The first publicly announced stage of the Hamas crypto funding case resulted in the seizure of about $201,400 from cryptocurrency wallets and exchange accounts.
Authorities said those assets were connected to a wider network that had moved more than $1.5 million in virtual currency since October 2024. Subsequent warrants eventually pushed the amount seized above $560,000.
A blockchain address does not necessarily display its owner’s identity, but transactions recorded on public blockchains generally remain available for analysis.
Investigators can combine those records with exchange information, known service addresses and other evidence when attempting to determine control of funds.
The DOJ’s March 2025 announcement said the initial seizure involved approximately $89,900 linked to cryptocurrency addresses and about $111,500 spread across three additional accounts.
Those accounts were registered to Palestinian individuals living in Turkey and elsewhere, according to the government.
The latest announcement, however, did not provide a detailed cryptocurrency-by-cryptocurrency breakdown of the entire $560,000 figure.
Federal investigators eventually moved beyond digital wallets. Warrants issued in July and August 2026 authorized the seizure of domains and servers allegedly used by the Al Qassam Brigades for fundraising and recruitment.
The targeted infrastructure included Alqassam.ps, which authorities described as the military wing’s main website. By securing control of the systems, investigators were able to disrupt access and receive information transmitted through the seized infrastructure.
The Justice Department said the FBI also intercepted additional cryptocurrency donations allegedly intended for Hamas.
Authorities further obtained information concerning thousands of people who had contacted the platforms in efforts to donate or attempt to donate through cryptocurrency and conventional payment methods.
The government has not publicly disclosed how many of those contacts completed payments, how many were based in the United States or whether any were subsequently charged.
The investigation was led by the FBI’s Albuquerque Field Office in coordination with the bureau’s Counterterrorism Division, Cyber Division and New York Field Office.
Prosecutors from the District of Columbia and the Justice Department’s National Security Division are handling the matter.
Public blockchains generally preserve transaction histories even when users repeatedly change receiving addresses.
This can allow investigators to examine movements between wallets, exchanges, brokers and other services, particularly when blockchain analysis is paired with information from regulated platforms or other investigative sources.
A Chainalysis review cited in the original report examined the initial March 2025 seizure and said authorities followed transfers involving exchanges, brokers and operational wallets.
The issue is particularly relevant for centralized exchanges and other cryptocurrency businesses that maintain customer information.
Connecting an on-chain address with an identified exchange account can provide investigators with information that blockchain data alone may not reveal.
Unlike cash transactions that may leave little publicly accessible evidence, transfers executed on transparent blockchains can remain permanently recorded.
Still, the seizure should not be interpreted as evidence that every transaction passing through the identified fundraising network directly financed a specific attack.
The affidavits set out evidence investigators presented to obtain judicial authorization to seize assets. Questions of criminal liability and permanent forfeiture involve separate legal processes.
For digital-asset investors, the immediate significance is less about the $560,000 headline figure than the investigative methods behind the operation.
Authorities combined blockchain tracing, human-source information, exchange-linked data and the seizure of internet infrastructure while pursuing the alleged fundraising network.
A court-authorized cryptocurrency seizure also does not automatically transfer permanent ownership of the assets to the government.
Final forfeiture is a separate legal proceeding, and the latest DOJ announcement did not identify a completed forfeiture judgment covering the full amount. Nor did it announce newly charged defendants connected to the entire series of seizures.
The Hamas crypto funding action reinforces the compliance risks surrounding cryptocurrency wallets connected to sanctioned entities, designated organizations and other high-risk networks.
Investors using centralized exchanges or stablecoins should recognize that digital assets may remain subject to legal orders, exchange controls and issuer intervention even after transactions have been recorded on a blockchain.
The investigation remains active. Future court filings could reveal additional information about the cryptocurrencies involved, the services used to transfer the assets and the jurisdictions connected to the alleged fundraising operation.
The Hamas crypto funding investigation also provides investors with another practical example of how transparent blockchain records can become part of enforcement and compliance investigations.
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