The US Treasury has blacklisted two French charities and three people, accusing them of sending crypto and other funds to Hamas. Crypto exchanges and payment firms now have to screen for these names or face regulatory trouble.
The US is stepping up its fight against crypto-backed terror funding. The Treasury Department has put two French charities and three individuals on its sanctions list, saying they moved money to Hamas. US-regulated crypto exchanges, custodians, and payment processors must now block any assets tied to these names and report them to the Office of Foreign Assets Control (OFAC) within ten business days.
Sanctions hit both crypto and traditional finance
The new sanctions target Association Baraka, Ensemble C Mieux, Faouzi Barika, Amel Oualid, and Saleem Abdallah Saleem al-Zaq. OFAC says Barika and Oualid, both in France, sent hundreds of thousands of dollars in crypto to al-Zaq, who is described as a deputy battalion commander in Hamas' military wing in Gaza. The Treasury claims the two fundraisers and their groups raised over $2 million for Hamas from 2020 to 2026. It did not say how much of that total was crypto versus traditional money.
The US Treasury directly linked over $2 million in funds-channeled through sham charities and crypto rails-to Hamas, highlighting the evolving use of digital assets in illicit finance.
OFAC treats digital assets the same as cash and other property under sanctions rules. If a US-regulated crypto company finds assets belonging to a blocked person, it must freeze them and report to OFAC. There is no need to convert frozen crypto into dollars. Blocked assets must be reported every year. The rules also cover companies owned 50% or more by one or more sanctioned parties, even if those companies are not named directly.
Crypto firms face more compliance work
For US exchanges and payment processors, the expanded list means more compliance checks. Firms have to screen not just the five new names but also any companies they control. OFAC has warned that foreign banks could face secondary sanctions if they knowingly help move large sums for these parties. This puts pressure on offshore exchanges and intermediaries. Still, the US move does not freeze every blockchain transaction linked to the sanctioned parties. Enforcement depends on where the company is based, who owns it, and how big the transaction is.
Compliance teams now have to watch for any new wallet addresses or intermediaries that US authorities might publish. If more are named, exchanges may need to review past transactions and widen their screening. This is similar to the split seen when big traders took different sides in Bitcoin futures, as reported earlier.
Reuters confirmed that the US Treasury described the targeted network as a 'multi-year financing architecture,' with over $2 million funneled to Hamas through both sham charities and crypto channels. The sanctions specifically name French organizations Association Baraka and Ensemble C Mieux, underscoring France's role as a key jurisdiction in the scheme.
Wider impact and regulatory backdrop
The Treasury's move comes as US authorities track digital-asset flows alongside regular banking and cash. The new designations put the named parties under OFAC's rules for property held by US persons or passing through the US. US crypto firms that do not comply face heavy penalties. Foreign banks risk secondary sanctions if they knowingly process big transactions for blocked entities.
The Treasury says the $2 million is the total raised by the two French charities and their associates for Hamas over six years. The agency did not say all of it was crypto, showing that both digital and traditional finance are still used in illicit fundraising. The crypto part is limited to the hundreds of thousands of dollars that Barika and Oualid allegedly sent to al-Zaq.
OFAC's stance on digital assets matches a wider US trend: cryptocurrencies are treated as property, just like cash or securities. US-regulated firms must block access to assets, keep detailed records, and report every year on any blocked property. The rules apply whether the assets are digital or fiat, and also cover companies controlled by sanctioned people or groups.
For US crypto exchanges and payment processors, the immediate job is to update compliance systems and screening tools. The risk of secondary sanctions for foreign banks means offshore exchanges also have to watch their exposure to the named parties. As the Treasury keeps tracking digital-asset flows, crypto compliance is likely to get even tougher, with new wallet addresses and intermediaries possibly added to the list later.
The US government is getting better at tracing and freezing digital assets, but the results depend on how much exchanges, custodians, and payment processors cooperate worldwide. This latest move shows US authorities are ready to use their regulatory power to disrupt illicit fundraising, but it also shows how hard it is to enforce sanctions in a global, mostly anonymous financial system.
Crypto firms must identify and block assets linked to sanctioned parties, whether those assets are in fiat or digital form. OFAC does not require frozen crypto to be converted into dollars, but it does require quick reporting and ongoing recordkeeping. The rules also cover companies owned by sanctioned people, making strong compliance systems a must for any firm working in or with the US market.
