FinCEN is investigating cryptocurrency transactions amounting to $165 million, reported by American financial institutions, which are allegedly linked to Hamas. This was reported by WSJ.
In a report to Congress, the agency noted that it is examining suspicious activity reports from the past three years to identify instances of support for militants prior to their attack on Israel on October 7, 2023.
FinCEN acknowledged that the extent of the group’s use of cryptocurrencies might be exaggerated, as the funds under scrutiny may only be partially linked to Hamas.
In October 2023, WSJ reported that Palestinian militants received at least $134 million in digital assets. The publication prompted a sharp reaction from American lawmakers, who demanded that the Justice Department take action against the industry. They specifically pointed to Binance and Tether.
Analysts at Chainalysis stated that when calculating cryptocurrencies linked to terrorists, many erroneously include external funds that passed through various payment services interacting with criminals.
Experts at Elliptic have also pointed out the overestimation of the scale of terrorist group financing in cryptocurrencies.