Tether and Binance Accounts Tied to Justice Department’s Hamas Crypto Crackdown

The U.S. Department of Justice recently took a significant step in its fight against terrorism by seizing roughly $201,400 in cryptocurrency tied to Hamas, a group designated as a foreign terrorist organization by the United States. Announced on March 27, 2025, by the U.S. Attorney’s Office for the District of Columbia, this action disrupted a fundraising scheme that has moved over $1.5 million in cryptocurrencies since October 2024. The seized funds, primarily in the form of USDT on the TRON blockchain, were traced back to efforts supporting Hamas’s military wing, the al-Qassam Brigades.

Court documents reveal that the operation targeted a network using encrypted group chats to share cryptocurrency addresses with supporters worldwide. These addresses, at least 17 in total, funneled donations into a central operational wallet before the money was spread across exchanges and brokers to obscure its trail. The Justice Department’s move underscores its commitment to cutting off financial lifelines to terrorist groups like Hamas, which has been linked to deadly attacks, including those on October 7, 2023, against U.S. and Israeli nationals.

U.S. Attorney Edward R. Martin, Jr., emphasized the importance of this effort, stating that his office aims to halt Hamas’s ability to fund violence through any means available. Sue J. Bai, head of the National Security Division, echoed this sentiment, noting that Attorney General Pam Bondi has prioritized dismantling Hamas’s operations. FBI Special Agent in Charge Raul Bujanda of the Albuquerque Field Office, which led the investigation, highlighted how targeting these funds weakens the group’s capacity to operate, calling financial disruption a key tool in counterterrorism.

Details of the Seizure and Investigation

The seized cryptocurrency included about $89,900 from specific addresses controlled by Tether and another $111,500 from three accounts on crypto exchange Binance, registered to Palestinian individuals in Turkey and other locations. The investigation, driven by the FBI’s Albuquerque Field Office with support from its Counterterrorism and Cyber Divisions, relied on blockchain analysis to track the funds. Confidential sources also played a role, engaging with Hamas-linked email accounts to uncover donation addresses.

This action stems from a court-authorized warrant signed on March 25, 2025, just two days before the public announcement. The warrant directed Tether to freeze and transfer USDT to government-controlled wallets, while Binance was instructed to hand over the contents of the implicated accounts. Records show that while initial freezes captured smaller amounts, the final seizure reflects a broader haul, likely due to additional tracing or updated valuations at the time of execution.

The al-Qassam Brigades have been using virtual currency since at least 2019, shifting tactics over time to evade detection. Their latest approach involved rotating addresses and advising donors to avoid heavily regulated platforms like Binance, though some funds still landed there, making it a critical piece of the laundering puzzle. The FBI’s ability to pinpoint these transactions demonstrates the growing sophistication of law enforcement in tackling digital finance threats.