OFAC designated two charities and three individuals accused of moving over $2 million to Hamas through banks and cryptocurrency. Treasury named Association Baraka and Ensemble C Mieux and identified Saleem al-Zaq, Faouzi Barika and Amel Oualid. Prosecutors say donations collected in France were pooled, partly converted to crypto after December 2021, and sent onward; Chainalysis traced links to exchange activity tied to Hamas-linked wallets. The DOJ unsealed charges and reported six arrests.
US Treasury: Charities and Crypto Network Allegedly Channeled Over $2M to Hamas
Photo by BeInCrypto
The US Treasury's Office of Foreign Assets Control (OFAC) has designated two France-based charities and three individuals for allegedly funneling more than $2 million to Hamas using a mix of conventional banking, money service businesses and cryptocurrency transfers. The designations, announced alongside Justice Department actions, describe a multi-year scheme that used deceptive charitable fronts and digital asset channels to obscure the flow of funds.
Who Was Designated
Charities: Association Baraka and Ensemble C Mieux, both reportedly operating in France and presenting themselves as aid groups supporting civilians in Gaza.
Individuals: Saleem al-Zaq (described by Treasury as a Gaza-based deputy battalion commander in Hamas’s armed wing), and France-based fundraisers Faouzi Barika and Amel Oualid.
How the Alleged Scheme Worked
According to Treasury and US prosecutors, donations were collected in France and pooled through conventional banking channels. Investigators say some of the funds were held in a French bank account before being moved onward.
Prosecutors allege that al-Zaq initially received transfers via Western Union but asked in December 2021 that partners begin sending funds in Bitcoin or other cryptocurrencies to make tracing more difficult. Treasury says Barika and Oualid converted portions of donations into digital assets and transferred "hundreds of thousands of dollars" in crypto to al-Zaq. OFAC’s public notices did not include blockchain wallet addresses.
When one crypto platform raised questions about the source of funds in May 2023, the network reportedly switched to a different exchange. Blockchain analytics firm Chainalysis later identified exchange counterparties and deposit addresses linked to activity previously associated with Hamas-linked wallets, including addresses targeted by Israeli seizure orders.
Investigations and Legal Actions
The Department of Justice unsealed criminal charges against Saleem al-Zaq and announced six arrests tied to the investigation. Prosecutors state that al-Zaq and associates raised about $1.75 million through December 2025, including at least $626,000 from US donors; Treasury describes the broader financing architecture as having moved more than $2 million to Hamas.
OFAC also noted it previously sanctioned a Gaza-based crypto exchange, Buy Cash, in October 2023 as part of broader efforts to disrupt digital-finance channels that benefit militant groups.
Why This Matters
"These designations expose a sophisticated, multi‑year financing architecture that moved more than $2 million to Hamas through deceptive charitable fronts and cryptocurrency channels," the Treasury said, underscoring the evolving techniques used to evade detection.
The case highlights continued US emphasis on combining sanctions, criminal prosecution and blockchain tracing to target illicit finance networks that exploit both traditional and digital payment systems.
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