The US Department of Justice (DOJ) has announced the seizure of over $200,000 in cryptocurrency planned for use by the militant group Hamas for financing terrorism. This seizure is part of efforts to curb terrorist financing through digital assets.

The funds were tracked back to addresses allegedly managed by Hamas, involving over $1.5 million laundered through various exchanges and over-the-counter brokers. These funds are currently held across 17 wallets.

Previously, the US Treasury's Office of Foreign Assets Control, the UK, and Australia imposed sanctions on networks facilitating crypto transactions tied to Hamas.

Binance faced lawsuits alleging it indirectly aided Hamas, denying any special relationship with the group. Regulatory bodies are increasingly scrutinizing cryptocurrency's role in terrorist financing, discussing whether stricter regulations are necessary to prevent such activities.

According to Chainalysis, despite some terrorist organizations using crypto, most still rely on traditional financial methods.