The United States and the United Kingdom have intensified their efforts to combat the use of cryptocurrencies in terrorism financing, imposing fresh sanctions on entities and individuals linked to the Palestinian Sunni Islamist political entity, Hamas. This crackdown follows the October 7th attacks on Israel, which have prompted heightened scrutiny of potential funding sources for terrorist organizations.
Among those sanctioned are Gaza Now, a Gaza-based social media outlet known for promoting pro-Hamas content, and two London-based businesses, Al-Qureshi Executives and Aakhirah Limited. Additionally, Mustafa Ayash, the founder of Gaza Now, and Aozma Sultana, the director of the London businesses, have also been targeted for their roles in facilitating fundraising campaigns and spreading pro-Hamas messaging.
According to blockchain intelligence firm Chainalysis, while Gaza Now had been running cryptocurrency donation campaigns for some time, the entity significantly ramped up these efforts following the October 7th attacks. The social media outlet frequently changed donation addresses, posted and deleted requests for donations, and even switched between various cryptocurrencies in an attempt to evade increased scrutiny. Furthermore, Chainalysis revealed that the majority of the inflows to the flagged addresses originated from mainstream cryptocurrency exchanges, as well as from wallets previously seized by authorities, an Iranian exchange, and a money services business in Gaza.
As the use of cryptocurrencies in terrorism financing continues to evolve, the actions taken by the US and UK authorities underscore the growing need for enhanced vigilance and collaboration between nations to combat these illicit activities. The crackdown also serves as a reminder of the importance of robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures within the cryptocurrency ecosystem.
