Recently, the US Treasury’s Office of Foreign Assets Control (OFAC) and the UK’s Office of Foreign Sanctions Implementation (OFSI) have taken significant steps to crack down on entities linked to terrorism financing through cryptocurrency. This crackdown comes in the wake of the October 7th attacks on Israel, with two individuals and three entities facing fresh sanctions for their alleged involvement in fundraising for Hamas, a Palestinian Sunni Islamist political entity.
Among the entities that faced sanctions are Gaza Now, a social media outlet based in Gaza, as well as two London-based businesses, Al-Qureshi Executives and Aakhirah Limited. The founder of Gaza Now, Mustafa Ayash, and the director of the London businesses, Aozma Sultana, were also targeted for their roles in promoting pro-Hamas content and facilitating fundraising efforts for the organization.
Gaza Now has a history of promoting crypto donation campaigns, with some addresses flagged for receiving funds as early as 2021. However, following the attacks on October 7th, the channel significantly increased its efforts, frequently changing addresses to evade scrutiny. The platform posted and deleted donation requests, as well as switching between various cryptocurrencies to solicit funds for Hamas.
Chainalysis, a blockchain intelligence firm, found that the majority of the incoming funds for Gaza Now originated from mainstream crypto exchanges. Additionally, the flagged addresses received money from wallets seized by the National Bulk Cash Smuggling and Counterfeit Task Force (NBCTF), an Iranian exchange in Iran, and a money services business (MSB) in Gaza. Gaza Now’s personal wallets received over $40,000 in various crypto assets, with transactions facilitated by instant exchanges, crypto tumblers, and smart contracts to conceal the donors’ activity.
It was noted that Gaza Now’s incoming transactions varied in amounts, with most being under $10,000. Chainalysis speculated that larger transfers may have been internal movements of funds by the entity or its associates, rather than donations. The use of instant exchanges, crypto tumblers, and smart contracts pointed to donors’ attempts to conceal the true nature of their transactions.
The increased scrutiny from US and UK authorities on entities involved in crypto fundraising for Hamas highlights the importance of monitoring and regulating cryptocurrency transactions to prevent illicit activities. The sanctions imposed on Gaza Now, Al-Qureshi Executives, Aakhirah Limited, Mustafa Ayash, and Aozma Sultana send a strong message that financing terrorism through cryptocurrency will not be tolerated. It is essential for authorities to continue tracking and disrupting these channels to combat terrorism financing effectively.
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