In an 18-month counterterrorism operation, Federal Bureau of Investigation (FBI) agents confiscated more than $560,000 in crypto and dismantled the primary online network used by Hamas, a Palestinian political and military organization that is designated as a terrorist group by the United States, Israel, and the European Union.
Federal investigators executed three cryptocurrency seizure warrants on March 25, 2025, June 25, 2025, and October 10, 2025, according to Department of Justice (DoJ) court filings unsealed on September 1, which Finbold analyzed on September 4, 2026. The report noted that Hamas’s Al Qassam Brigades used cryptocurrency to solicit funds and recruit supporters.
Additionally, the FBI’s Albuquerque Field Office dismantled the Hamas-linked digital infrastructure by seizing the servers and web domains. Specifically, the DoJ revealed that the primary website, AlQassam.ps, enabled law enforcement to intercept incoming cryptocurrency transfers and obtain vital intelligence on thousands of prospective donors.
“A message to Hamas: We will stop your fundraising for terror. Your networks are not secure, your crypto is vulnerable, and we will not stop until your ability to wage war is defeated,” Jeanine Ferris Pirro, U.S. Attorney for the District of Columbia.
DoJ works with Chainalysis to counter Hamas crypto operations
To disrupt Hamas’s digital financing in 2025, the DoJ worked alongside Chainalysis, a private blockchain analytics platform, to expose and track its financial networks. These law enforcement agents utilized tools like Chainalysis Reactor, to identify cross-chain bridging, money mules, and rotating donation wallets.
Notably, the FBI identified recurring links, including shared gas-funding wallets used across multiple addresses controlled by the Al Qassam Brigades.
Building on these on-chain insights, federal authorities coordinated with private cryptocurrency exchanges and digital asset entities to execute court-authorized seizure warrants. As a result, the FBI froze targeted wallet addresses, intercepted incoming donor transfers, and confiscated illicit digital assets.
These funds are likely to end up in the Strategic Bitcoin (BTC) Reserve or the United States Digital Asset Stockpile once final forfeiture is completed.
Featured image via Shutterstock
