DOJ seizes $560K in crypto meant to fund Hamas

On September 1, the Justice Department announced a new blow against Hamas's finances. The FBI seized more than $560,000 in cryptocurrency that was meant to reach the group. Hamas is a U.S.-designated terrorist organization. Investigators also shut down the websites and online platforms Hamas used to raise money and recruit supporters. It's the latest move in an ongoing effort to choke off the group's funding.

This isn't the government's first move against this specific network. A related, earlier case tied to the same effort seized about $201,400. The money represents a tiny slice of what Hamas actually spends to operate. Crypto is easy for investigators to trace once they know where to look. Every transaction leaves a public record. That's likely why Hamas keeps losing crypto to seizures like this one. But it also means something else. The group's harder-to-trace funding — cash, and other channels — probably still dwarfs whatever gets caught.

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Will seizures like this one actually slow Hamas down, or just push its fundraising further underground? Terror financing investigators have gotten much better at following crypto trails in public blockchains. That's part of why groups like Hamas increasingly mix crypto with harder-to-trace cash and informal money networks. Expect the Justice Department to keep announcing seizures like this one. Each is real progress, but none of them, on its own, cuts off the group's money for good.