A newly unsealed affidavit filed by the Federal Bureau of Investigation (FBI) in the United States District Court for the District of Columbia has brought to light a disturbing and calculated operation by Hamas, the U.S.-designated terrorist organization. The affidavit, submitted in March, outlines how Hamas has effectively leveraged the digital frontier of virtual currencies to move funds illicitly through Turkey’s financial infrastructure. This operation, which directly supports Hamas’s military wing—the al-Qassam Brigades—demonstrates the organization’s evolving tactics in global terror financing, making use of digital tools, weak regulatory enforcement, and geopolitical loopholes.
According to the FBI’s affidavit, over $1 million in cryptocurrency was traced to various wallets associated with Hamas. These digital wallets were allegedly used to funnel donations in violation of U.S. laws, particularly those prohibiting the provision of material support to designated terrorist groups. What makes this development even more significant is the route and identity of the intermediaries involved. The affidavit details how the transactions were executed via wallets and accounts held by individuals with Turkish identity documentation—specifically Palestinians who had either been granted residency in Turkey or had acquired Turkish citizenship.
The funds were funneled through BTCTurk, a cryptocurrency exchange headquartered in Istanbul. The choice of BTCTurk and the broader Turkish financial network raises serious questions about the role of Turkish jurisdiction and its enforcement of international anti-terror financing laws. The FBI’s findings indicate that these individuals acted as key conduits for Hamas, exploiting the anonymity and speed of cryptocurrency transactions while embedding the flow of funds into a legitimate financial system that offers considerable cover for such operations.
The case underscores a growing trend among terrorist organizations: the pivot to decentralized finance (DeFi) to bypass international banking scrutiny. Unlike traditional banking methods, which are governed by stringent anti-money laundering (AML) and know-your-customer (KYC) regulations, cryptocurrencies offer a degree of pseudonymity. While blockchain transactions are technically traceable, real-world identities can be obfuscated without proper oversight and cooperation from exchanges.
Hamas is not new to these tactics. For years, it has run crowdfunding campaigns using Telegram and other social media platforms to solicit Bitcoin and other virtual currencies from sympathizers worldwide. But the recent FBI affidavit marks a sophisticated turn in their strategy—no longer relying solely on small, scattered donations but organizing a systemic network involving multiple actors, legal identities, and jurisdictional shelters.
Turkey, a NATO member and a key player in Middle Eastern geopolitics, has been increasingly criticized for its ambiguous stance on groups like Hamas. While many Western governments have blacklisted Hamas as a terrorist organization, Turkey has hosted Hamas leaders and maintained what it describes as “political” relations with the group. This political hospitality appears to have opened new avenues for Hamas to embed its financial activities within Turkish institutions.
The FBI affidavit points to a significant weakness in Turkish regulatory enforcement or possibly a deliberate blind eye turned to Hamas-linked transactions. It highlights the registration of cryptocurrency accounts using Turkish-issued identity documents—a clear indication that the individuals involved had successfully integrated into Turkey’s official systems. Whether by lax oversight or intentional negligence, this has allowed Hamas to weaponize residency rights and citizenship to their financial advantage.
The affidavit further petitions the court for the seizure of the identified cryptocurrency accounts, a move that reflects the U.S. government’s aggressive posture on countering the financial networks of terrorist groups. The Justice Department’s commitment to tracking virtual currencies and sanctioning enablers is a critical front in the global war against terror financing.
According to the affidavit, the ultimate destination of these funds was Hamas’s military wing—the al-Qassam Brigades. Responsible for numerous rocket attacks, tunnel infiltrations, and other acts of terrorism against Israeli civilians, al-Qassam is an operationally sophisticated militant group with high funding demands. The financial transactions tracked by the FBI were not for humanitarian or political purposes, but were explicitly earmarked for the procurement of weapons and military support.
This distinction matters immensely in international law and counter-terror financing efforts. The funds in question were not “dual-use” or charitable donations misappropriated by third parties. They were purposefully and knowingly directed toward militant operations, highlighting the deliberate and premeditated nature of the individuals involved in the laundering process.
The revelations in the FBI affidavit serve as a wake-up call for the international community. Cryptocurrency, while offering revolutionary advancements in finance and accessibility, has also emerged as a double-edged sword. Without robust international regulations, cooperative legal frameworks, and enforcement mechanisms, digital currencies will continue to be exploited by terrorist networks.
There is now growing pressure on Turkey to reassess its policies toward groups like Hamas and its regulatory posture toward digital finance. Western allies, particularly the U.S. and European Union, are expected to urge Ankara to strengthen its anti-money laundering practices and enforce international sanctions more rigorously.
Additionally, global cryptocurrency exchanges like BTCTurk must come under tighter scrutiny. Regulatory bodies will likely demand better compliance with international AML laws, including more rigorous KYC checks and mandatory reporting of suspicious transactions.
The FBI’s affidavit has laid bare a complex, clandestine financial network rooted in Turkey and extending into the digital world of cryptocurrency. Hamas’s strategic use of virtual currency, combined with the legal shelter provided by Turkish documentation and financial systems, showcases how modern terrorism adapts to changing technologies and political landscapes.
As the world continues to battle terrorism on multiple fronts, dismantling its financial backbone remains crucial. The fight must evolve with the tactics of the enemy—swiftly, intelligently, and cooperatively. The recent findings are not just about one terror group or one country—they are about the urgent need for a global system that refuses to let digital borders become safe havens for blood money.
