Israel’s military reported the killing of two key financial operatives linked to Hamas and Palestinian Islamic Jihad on June 21, marking the latest in a series of targeted strikes aimed squarely at the militant groups’ money pipelines. The operatives, Hussein Qadra and Mohammed Farra, allegedly helped move more than 500 million shekels, roughly $140 million, to Hamas.
The IDF identified Qadra and Farra as critical nodes in a funding network that supported Hamas’s military operations in the Gaza Strip. Earlier in June, Israeli forces targeted Khader Jamasi, described as a manager of Gaza’s funds-transfer operations, along with his associate Muhammad Harazin. Both were reportedly involved in moving tens of millions of dollars to Hamas through similar traditional methods.
Between 2021 and 2023, multiple reports documented Hamas actively using cryptocurrency for fundraising. The group solicited Bitcoin donations, utilized exchange platforms, and experimented with various digital currencies to evade traditional banking restrictions and sanctions.
That history makes the current absence of any crypto angle genuinely interesting. The operatives eliminated in June 2026, across multiple strikes, were all running what appears to be old-school money transfer operations. No wallets seized, no blockchain analysis cited, no exchange accounts frozen.
One possible explanation is that increased regulatory scrutiny and blockchain analytics have made crypto a riskier channel for militant financing than it was three or four years ago. Companies like Chainalysis and Elliptic have built entire business lines around tracing illicit crypto flows, and law enforcement agencies worldwide have gotten meaningfully better at following digital money trails.
Another possibility is that the scale of funding involved, $140 million through a single network, simply works better through established informal value transfer systems like hawala networks, which have operated in the region for centuries and don’t leave the kind of immutable public ledger that blockchains do.
The Financial Action Task Force (FATF) and national regulators have spent years building frameworks to monitor crypto’s use in illicit finance. The fact that Hamas apparently moved away from crypto could be interpreted as evidence that existing regulations and blockchain transparency are working. If even sanctioned militant organizations find crypto too transparent or too risky to use at scale, it undermines the narrative that digital assets are primarily tools for illicit finance.
Firms that specialize in blockchain forensics and transaction monitoring stand to benefit from sustained government demand for their services, regardless of whether the current threat involves crypto or not.