The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has imposed sanctions on a cryptocurrency operator believed to have ties to the Palestinian militant group Hamas. These sanctions were announced on October 18, targeting both Hamas members and individuals in the financial services sector associated with the group. Among those affected is a Gaza-based virtual currency exchange called "Buy Cash Money and Money Transfer Company" and its operator, who owns a Bitcoin Wallet address.
The primary objective of these sanctions is to cut off the sources of revenue for Hamas, which came in response to attacks on Israel that occurred on October 7. The U.S. Treasury Department aims to prevent Hamas from raising and utilizing funds for acts of terror and violence, especially against the people of Israel. U.S. Treasury Secretary Janet Yellen emphasized that they will take all necessary measures, including sanctions and cooperation with allies, to track, freeze, and seize any assets associated with Hamas within their jurisdictions.
It's worth noting that a blockchain analytics firm, Elliptic, reported on October 18 that various terrorist groups had used this remittance company to move over $25 million in Bitcoin (BTC) and Tether. The company has been in operation under various names since 2015. Apart from Hamas, there are allegations of connections to other entities, including affiliates of al-Qaeda and ISIS (Islamic State of Iraq and Syria).
The U.S. Treasury Department frequently deploys sanctions as a tool to disrupt the financial support of entities suspected of involvement in terrorism or other illegal activities. In a related move on October 3, the U.S. Treasury Department sanctioned cryptocurrency wallets associated with Chinese chemical manufacturers, and the Department of Justice also indicted individuals involved in the production of the drug fentanyl.
