On September 1, the U.S. Department of Justice stated that federal investigators have seized over $560,000 in cryptocurrency assets suspected of being used to fund Hamas. The Federal Bureau of Investigation (FBI) also took control of multiple domains and servers, stating that these infrastructures were used for online fundraising and recruitment activities.
Five search warrants cover funds and websites.
This operation was supported by five search warrants issued between March 2025 and August 2026. Three of these targeted crypto assets, while the other two targeted network infrastructure allegedly linked to the Qassam Brigades, a subgroup of Hamas.
The Department of Justice stated that three search warrants related to crypto assets, dated March 25, 2025, June 25, 2025, and October 10, 2025, resulted in aggregate seizures exceeding $560,000.
Investigators said the informant helped identify a fundraising system that distributes constantly changing cryptocurrency addresses to donors through encrypted group chats and websites to make tracking more difficult.
Early action recovered $201,400
Public information shows that, in the first round of operations in 2025, approximately $201,400 has been recovered from multiple wallets and exchange accounts. Law enforcement officials stated that these assets are linked to a network that has transferred over $1.5 million since October 2024.
However, the court documents do not establish that every transaction within the system was directly used for attack activities. The related affidavit was primarily intended to provide the court with the basis for law enforcement’s application to seize assets.
FBI expands to domains and servers
Subsequently, the FBI expanded its scope from on-chain funds to internet infrastructure. Two search warrants issued on July 29 and August 18, 2026, authorized law enforcement to seize domains and servers allegedly used for fundraising and recruitment.
The targeted domains included Alqassam.ps, which the Department of Justice identified as the primary website of the Qassam Brigades. After gaining control of these domains and servers, investigators were able to not only disrupt access but also intercept information transmitted through the associated infrastructure.
The Department of Justice stated that this operation enabled the FBI to intercept additional suspected cryptocurrency donations going to Hamas and obtain information on thousands of individuals who contacted related platforms and attempted to donate using cryptocurrency or traditional payment methods.
The public ledger serves as a traceable record.
Although the involved network frequently changes its receipt addresses, transfer records on public blockchains are typically retained long-term. Law enforcement agencies can later link these transfers to exchange accounts, brokerage services, and other addresses once they have gathered additional evidence.
The Department of Justice stated that the investigation into this case combined on-chain tracking with informant information. Chainalysis’s review of the early seizure operations also noted that law enforcement traced the flow of funds along transfer paths between exchanges, brokers, and operational wallets, ultimately gaining control of the target assets.
The report also noted that in similar law enforcement actions, stablecoin issuers have previously frozen tokens associated with sanctioned or suspected illicit networks. Tether previously assisted U.S. law enforcement in freezing approximately $1.6 million in assets suspected of being linked to a terrorist financing network.
Seizure does not equal final forfeiture.
Court-approved seizure means law enforcement agencies can control specific assets during an investigation, but permanent forfeiture still requires a separate legal proceeding.
The Department of Justice has not yet disclosed which specific cryptocurrencies were seized, how many associated parties actually made payments, how many of those are located within the United States, or whether any donors have already been charged. The case is still ongoing, and further investigations, sanctions, asset forfeitures, or criminal charges may follow.