US Sanctions France-Linked Hamas Crypto Network

The US Treasury Department has sanctioned two France-based charities and three people accused of raising money for Hamas. The action blocks US persons from dealing with the designated parties and puts pressure on crypto firms to identify and freeze related assets.

The designations do not amount to a worldwide freeze of every blockchain transaction connected to the parties. OFAC's enforcement depends on jurisdiction, ownership, whether property is blocked, and, in some cases, the knowledge and significance of a transaction.

What OFAC Alleges

Treasury alleges that Faouzi Barika and Amel Oualid raised funds in France for humanitarian causes before transferring the money to Hamas. It also alleges that the two fundraisers and associated organizations collected more than $2 million between 2020 and 2026.

The crypto-specific allegation is narrower. Treasury says Barika and Oualid sent hundreds of thousands of dollars in cryptocurrency to Saleem Abdallah Saleem al-Zaq, whom the agency described as a Gaza-based deputy battalion commander in Hamas's military wing.

Treasury did not say that the full $2 million moved in digital assets. The crypto transfers were part of a broader fundraising total, and the pages reviewed did not provide the exact amount transferred in crypto or the share of the total that moved on-chain.

Treasury also said $1.5 million of the total was raised after Hamas's October 7, 2023 attack on Israel.

What the Sanctions Change

The designated parties are Association Baraka, Ensemble C Mieux, Barika, Oualid and al-Zaq. The sanctions block property and interests in property held by them under US jurisdiction. US persons are generally barred from transacting with the designated parties.

For US exchanges, custodians and payment processors, the practical requirement is to block property in which a designated party has an interest when it comes under their possession or control. A licence or exemption can apply.

OFAC treats digital assets under the same sanctions framework as fiat currency and other property. A US-regulated crypto company that identifies assets belonging to a blocked person must deny access and report the property to OFAC within 10 business days. Blocked assets are also subject to annual reporting requirements.

The agency does not require firms to convert frozen cryptocurrency into dollars. A custodian may keep the assets in their existing form while preventing the sanctioned party from accessing or transferring them.

The restrictions also reach entities owned 50% or more, directly or indirectly, by one or more designated parties. Compliance teams may therefore need to identify entities beyond the five published names.

Crypto Funds Are Part of a Wider Network

Treasury Secretary Scott Bessent said: “Terrorist organizations like Hamas rely on sophisticated financial facilitators and fraudulent schemes designed to exploit the public.”

But Treasury officials have previously said Hamas and other terrorist groups still rely mainly on conventional finance. The sanctions describe crypto as one channel inside a wider fundraising network, not as Hamas's primary funding source.

That distinction matters. The available reporting does not show wallet addresses, transaction hashes or independent blockchain analytics. The transfers are presented as Treasury allegations, not as a publicly documented on-chain trail.

Reports last month also said the Al-Qassam Brigades advised donors to avoid sending funds directly to Binance and to use other crypto services before moving money to a TRON wallet. That report is separate from the Treasury allegations in this case.

The next test for compliance teams is whether US authorities publish additional wallet addresses, intermediaries or entities linked to the network. Such disclosures could expand screening beyond the current designations and force exchanges to reassess historical exposure.