US and Allies to Intensify Sanctions Against Hamas, Targeting Crypto Assets to Cut Funding

The United States and its allies are set to escalate sanctions against the militant group Hamas in the coming days.

According to the U.S. Deputy Treasury Secretary Wally Adeyemo, more actions will be taken in the coming days and weeks to cut funding channels to Hamas, Reuters reported.

Earlier, US Senator Elizabeth Warren had cited a WSJ report to call for a crackdown on crypto funding to Hamas. The content of the report was later proven to be widely exaggerated.

US to Crackdown Crypto Channels to Hamas

Adeyemo revealed that both public and undisclosed sanctions would be imposed, targeting various channels through which Hamas receives support.

The focus will be on shutting down charities and pursuing individuals involved in facilitating payments for the militant organization.

In the aftermath of Hamas’s October 7 attack, Washington has already implemented two rounds of sanctions, concentrating on the group’s investment portfolio and issuing alerts to financial institutions to counter Hamas financing.

Brian Nelson, the Treasury’s top sanctions official, recently engaged with the private sector, including cryptocurrency firms and payment processors, to discuss strategies for countering Hamas’s fundraising techniques.

The U.S. Treasury Under Secretary for Terrorism and Financial Intelligence assured continued collaboration with entities actively investigating and disrupting Hamas-related activities.

Crypto in Focus

While acknowledging that the majority of Hamas’ assets do not currently come from crypto, Adeyemo emphasized the importance of the crypto industry implementing anti-money laundering safeguards. He warned that without such measures, Hamas and similar groups could increasingly turn to cryptocurrency in the future.

To address this concern, the Financial Crimes Enforcement Network (FinCEN) is proposing a rule under Section 311 of the USA Patriot Act.

This rule designates cryptocurrency “mixing” transactions as a primary money laundering concern, compelling financial institutions to monitor and report them.

Adeyemo stressed that these efforts to cut off Hamas funding would increasingly target facilitators in third countries, requiring coordination with allies and partners.