OFAC Levies New Sanctions on Crypto Networks Linked to Hamas
Summary:
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed new sanctions on networks associated with cryptocurrency transactions linked to the terrorist group, Hamas. The sanctions target key financial intermediaries managing the funds transfer. The action is a joint effort with UK and Australian authorities, representing the fifth round of sanctions against Hamas following the group’s October 7 attacks on Israel. Included in the sanctions are Gaza-based entities suspected of facilitating financial transactions for Hamas.
On January 22, the Office of Foreign Assets Control (OFAC), a division of the U.S. Department of the Treasury, introduced fresh sanctions targeting "networks and enablers" linked with cryptocurrency operations in connection with the terrorist organization, Hamas. These sanctions have been levied in response to Hamas' attacks on Israel on October 7, marking the fifth round of sanctions against the group. The Treasury department went after financial intermediaries that played crucial parts in transferring cryptocurrency resources to Hamas. This move was synchronized with similar actions taken by authorities in the UK and Australia.
Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence stated, "Hamas has been seeking to exploit various financial transaction methods, including cryptocurrency misuse, to funnel money for their terror activities."
Among the entities included in OFAC's list of Specially Designated Nationals are members of the Shamlakh family, responsible for directing millions of dollars from Iran to Hamas through a Gaza-based money exchange, and the Herzallah Exchange, suspected of working with Hamas to facilitate cryptocurrency transactions. However, the sanctions did not disclose any specific cryptocurrency addresses.
The newly imposed sanctions are an extension of those earlier declared by OFAC against crypto entities linked to Hamas following the October 7 attacks. Some media houses, including The Wall Street Journal, made allegations about the funding of this terror network through cryptocurrency, but certain experts have questioned the possibility of such claims being exaggerated. The Wall Street Journal later issued a correction statement.
Published At
1/22/2024 7:24:13 PM
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