US Treasury Sanctions Gaza-Based Crypto Broker, Operator For Allegedly Facilitating Hamas' Crypto Transactions

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has made a move to disrupt funding for Hamas by sanctioning the Gaza-based crypto broker Buy Cash Money and Money Transfer Company (Buy Cash) along with its operator for allegedly facilitating cryptocurrency transactions for the militant group.

The OFAC alleged that Buy Cash, the Gaza-based business that offers money transfer and virtual currency exchange services, including Bitcoin, and its operator Ahmed M. M. Alaqad, were not only involved in Hamas fundraising, but have also been used as a medium by the Palestinian military group to move funds to other terrorist groups and its affiliates.

The crypto broker's domain was registered in July to Alaqad as the owner, who has also acted as the financial exchange's representative.

The OFAC alleged that a Buy Cash account was registered by individuals allegedly involved in paying large quantities of infrastructure on behalf of the Islamic State of Iraq and Syria (ISIS).

In 2021, the Israel National Bureau for Counter Terrorist Financing confiscated multiple crypto wallets linked to a Hamas fundraising activity and several others associated with the military wing of the Palestinian organization Hamas, the Izz al-Din Qassam Brigades.

"Buy Cash is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hamas. Alaqad is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Buy Cash," the OFAC said in its latest statement.

As of Oct. 19, the wallet sanctioned by the U.S. government only holds around $16 in crypto assets, based on the latest data from blockchain analytics firm Arkham Intelligence, with its last transaction processed in May 2022.

Blockchain analysis firm Elliptic, in a recent blog, however, claimed that Buy Cash used several wallet addresses, which cumulatively received crypto assets, including Bitcoin and Tether, amounting to over $30 million since 2015. Elliptic said a small portion of these funds have been associated to terrorism.

"Hamas often relies on small-dollar donations, including through the use of virtual currency. While individual amounts may vary, any information can help identify new investigative links for law enforcement and help disrupt planned attacks. OFAC appreciates members of the public who have tips related to Hamas fundraising, including information regarding Hamas' online fundraising campaigns and specific information such as account numbers, and virtual currency wallet addresses," OFAC said.