Sanctions Overview
In an assertive move on October 18, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department took aim at a cryptocurrency operator allegedly embroiled with Hamas. The sanctions are part of a broader strategy to dismantle funding channels for this Palestinian militant group, particularly after their violent actions against Israel.
The Targeted Entities
Among the new additions to the OFAC’s list of specially designated nationals is a virtual currency exchange based in Gaza, aptly named Buy Cash Money and Money Transfer Company, along with its operator, Khan Yunis. The Treasury asserts a direct link between the exchange and Hamas, with ownership also attributed to Ahmed M.M. Alaqad. These entities are accused of facilitating the movement of digital currencies, particularly Bitcoin (BTC), to finance terror activities.
Statement from Treasury Secretary
Janet Yellen, the U.S. Treasury Secretary, underscored the urgency of the sanctions by stating, “We will continue to take all steps necessary to deny Hamas terrorists the ability to raise and use funds to carry out atrocities and terrorize the people of Israel.” Her remarks reflected the seriousness of the U.S. commitment to tackling financial networks that support terrorism.
Financial Movements Scrutinized
Blockchain analytics firm Elliptic reported a staggering $25 million in Bitcoin and Tether (USDT) transactions linked to this money transfer company since 2015. But it doesn’t stop there—other notorious groups, such as al-Qaeda affiliates and ISIS, have also been implicated in transactions involving this exchange, raising alarm bells about the scope of illicit crypto activity.
Broader Context and Previous Actions
This isn’t the U.S. government’s first brush with sanctions in the crypto arena. Just recently, they targeted crypto wallets associated with Chinese chemical manufacturers, signaling a growing trend: the use of economic measures to stifle groups perceived as threats. As terrorism increasingly embraces digital currency, the Treasury’s enforcement actions are likely to continue expanding.
