In a recent move by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), a Gaza-based crypto operator allegedly tied to Hamas has been targeted with sanctions. The announcement, made on October 18, was part of a broader effort to thwart the financial operations of Hamas in the aftermath of an attack on Israel.
Details of the Sanctions
OFAC’s sanctions extend to a virtual currency exchange based in Gaza and its operator, both allegedly connected to Hamas. The specific entities are the digital currency exchange Buy Cash Money and Money Transfer Company, and its operator, Khan Yunis, a resident of Gaza. The Treasury also named the owner of the business, Ahmed M.M. Alaqad, in the sanctions.
These sanctions aim to “root out Hamas’s sources of revenue”, particularly in light of the October 7 attack which resulted in several Israeli casualties. The key points include:
- The inclusion of a Bitcoin (BTC) wallet address in the list of sanctioned entities.
- The intention to block Hamas terrorists from raising and using funds for their activities.
- The ongoing efforts to track, freeze, and seize any Hamas-related assets across various jurisdictions in cooperation with allies and partners.
Additional Involvement in Illicit Activities
On the same day as the sanctions announcement, Elliptic, a blockchain analytics firm, reported that other terrorist groups had used the sanctioned money transfer company. Over $25 million in Bitcoin and Tether (USDT) has reportedly moved through the firm since 2015, including transactions allegedly linked to an al-Qaeda affiliate and ISIS (Islamic State of Iraq and Syria).
Implications and Reactions
Following the terrorist attack, Israel declared war on Hamas, leading to heavy bombardments over Gaza. The crisis has left many residents unable to escape. Amidst this, U.S. President Joe Biden was in Israel for discussions with officials who agreed to allow humanitarian aid into Gaza from Egypt.
The U.S. Treasury frequently employs sanctions as a strategy to undermine financial support for entities suspected of involvement in terrorism or other illicit activities. This is not an isolated incident, as on October 3, the Treasury announced sanctions against crypto wallets linked to China-based chemical manufacturers associated with the production of the drug fentanyl.
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