Abdullah Bozkurt/Stockholm
A newly filed affidavit by the Federal Bureau of Investigation (FBI) in the United States has revealed how Hamas, a designated terrorist organization, has been leveraging virtual currency to funnel funds through Turkey’s financial and banking networks.
The application filed in March with the United States District Court for the District of Columbia detailed a series of donations made to Hamas in violation of US law and petitioned the court to seize identified cryptocurrency accounts for providing material support to the organization.
The funds were transferred through multiple transactions to accounts registered by Palestinians with Turkish identity documents, indicating that Hamas has been utilizing Palestinians who were granted residency in Turkey or had already been naturalized as Turkish citizens to move funds through the Turkish financial system.
These funds, destined specifically for Hamas’s military wing, the al-Qassam Brigades, totaled over $1 million and have been traced from virtual currency wallets to various exchanges, including BTCTurk, a cryptocurrency exchange based in Istanbul.
The investigation revealed that out of the 25,211 USDT (Tether) donated, approximately 23,618 USDT was transferred directly to a wallet linked to the al-Qassam Brigades’ operational wallet, designated as “Target Account 13.” Tether is one of the most widely used stablecoins in the cryptocurrency market and is issued by Tether Limited.
Around 1,600 USDT was routed to a cluster of addresses identified as being connected to BTCTurk.
However, due to concerns about alerting the exchange’s customers, the FBI — unlike with other virtual currency platforms — did not request records from BTCTurk. Nonetheless, the reliability of the blockchain analysis software used in the investigation has been validated through numerous successful subpoenas and requests in past cases.
“I have not requested records from BTCTurk due to concerns that the exchange may notify customers,” stated an unnamed FBI special agent in the affidavit. The agent has investigated federal criminal violations related to high technology and cybercrime. The statement underscores the deep mistrust within the US law enforcement agency toward Turkish authorities and companies.
FBI affidavit in the case of the seizure of Hamas virtual assets:
FBI_crypto_currency_Hamas
BTCTurk markets itself as Turkey’s first cryptocurrency exchange and the fourth largest in the world. It operates multiple entities in Turkey under various registered names, including its primary business arm, the cryptocurrency exchange and trading house BtcTurk Kripto Varlık Alım Satım Platformu A.Ş., which is primarily owned and/or operated by Celalettin Özgür Güneri, Ayça Aktolga Öztürk and Kerem Tibuk. The company was originally established in May 2017 under the software firm Eliptik Yazilim ve Ticaret A.Ş.
Other associated companies include the digital data hosting firm BtcTurk Dijital Saklama A.Ş. (formerly Eliptik Dijital Saklama Yönetim A.Ş.), the investment and brokerage firm BtcTurk Yatırım Menkul Değerler A.Ş. (previously Eliptik Yatırım Menkul Değerler A.Ş.) and the information technology firm BtcTurk Bilgi Teknolojileri Ticaret A.Ş. (formerly Liberyum Danışmanlık Bilgi Teknolojileri Ticaret A.Ş.).
In addition to those named above, several individuals serve on the boards of these companies, but one name stands out in particular: Tevfik Kınık, former vice chairman of Turkey’s Capital Markets Board (Sermaye Piyasası Kurulu, SPK), who is a board member of BTCTurk’s brokerage arm, authorized to operate on the Istanbul Stock Exchange in January 2023. This suggests that BTCTurk is a well-connected firm, capable of easily securing licenses and authorizations from Turkish government authorities.
In sharp contrast to BTCTurk, the FBI worked closely with other companies identified during the investigation, such as Tether Limited and Binance, one of the world’s largest cryptocurrency exchanges, to uncover Hamas’s secret accounts. Both companies provided records to the FBI while independently taking action to freeze and block accounts linked to Hamas.
The records obtained from Binance showed that a user with identification number 581991390 received a total of 11,800 USDT directly from the al-Qassam Brigades operational wallet. These funds were deposited into the account via four transfers between January 7, 2025 and February 3, 2025. As of March 12, 2025, the total amount held in the account was 2,447.53999311 USDT.
This user account was owned by a Palestinian individual who had a Turkish driver’s license and had recent IP address logins from Turkey, Egypt and Oman, suggesting that the Palestinian is either a naturalized Turkish citizen or has valid residence in Turkey as an investor or migrant, having been provided with Turkish identity papers.
Another Binance user, with ID number 142810781, was also identified as a Palestinian who has permanent residence in Turkey. The individual received a total of 111,000 USDT directly from the al-Qassam Brigades operational wallet, with these funds being deposited into the account in 14 transfers between January 23, 2025 and March 6, 2025. As of March 12, 2025, the total amount held in the account was 2,788.69466176 USDT.
According to the FBI investigation, since early 2019, the al-Qassam Brigades has solicited donations via cryptocurrency, using platforms like Telegram and their official websites. The group has actively promoted Bitcoin and other cryptocurrencies as untraceable methods for donors to support its cause. Despite claims of operational security, US authorities have successfully used blockchain analysis to track these transactions.
In April 2023 Hamas halted Bitcoin donations, citing safety concerns for donors, but the group continued to solicit funds through other means, possibly due to a desperate need for financing following the Hamas attack on Israel on October 7, 2023 and the Israeli counterattack that severely impacted the militant organization. Recent investigations have identified the use of platforms like Trust Wallet, RedotPay and Bybit, which facilitate the anonymous transfer of funds.
On February 6, 2025 the FBI’s Albuquerque office uncovered a network soliciting donations to the al-Qassam Brigades via virtual currencies. Using a confidential source, the FBI tracked communications with Hamas’s fundraising email, which instructed potential donors how to transfer funds securely and provided a digital wallet address.
Further tracing by the FBI revealed that despite Hamas’s claims that each wallet would only receive one donation, the identified wallet received multiple deposits between February 11 and February 21, 2025. These deposits totaled over 25,000 USDT, with withdrawals taking place shortly after the funds were received. These findings underscore the continued threat posed by Hamas, not only in its military actions but also in its ability to exploit financial systems to fund its operations.
As the Israel-Hamas war continues, Hamas’s ability to generate funds through innovative means, like virtual currencies, remains a crucial concern for global counterterrorism efforts. Despite efforts to shut down these channels, Hamas continues to adapt, finding new ways to sustain its operations and perpetuate the violence that has plagued the region for decades.
At the center of the case are various virtual currencies, including stablecoins like Tether (USDT), which are pegged to the US dollar. Tether, issued by Tether Limited, is a widely used digital currency that operates on multiple blockchains, including Ethereum and Tron. These digital assets, although marketed as stable, are allegedly being used to facilitate illicit financial transactions linked to terrorist financing and other criminal activities.
Tether Limited has already responded to law enforcement requests by freezing several addresses holding USDT associated with the investigation. In fact the company has blocked access to these virtual assets, rendering the funds inaccessible to the holders of the targeted addresses until a court order is obtained.
The FBI has argued that without a seizure warrant, these assets could be quickly moved or concealed, undermining efforts to ensure the availability of the property for forfeiture. The agent’s affidavit emphasizes the urgency of acting quickly in cases involving virtual currencies due to their unique characteristics and ease of transfer.
Under US law assets related to terrorism can be subject to both criminal and civil forfeiture, including funds derived from money laundering. The FBI’s request is supported by evidence that these virtual currencies were involved in illegal activities, including money laundering to conceal the true origin and destination of the funds.
Individuals or organizations found guilty of providing material support could face severe penalties, including up to 20 years in prison. Moreover, those involved in laundering the proceeds of criminal activities could face prosecution, specifically targeting financial transactions designed to conceal the illicit origin of funds. Conspiracy to commit money laundering also carries substantial penalties.
The rise of decentralized finance (DeFi) has introduced new challenges for law enforcement in tracking and seizing illegal funds. DeFi platforms, primarily operating on the Ethereum blockchain, enable users to engage in financial activities like lending, borrowing and trading without centralized oversight. While DeFi offers many advantages in terms of accessibility and efficiency, it also provides an avenue for criminals to launder funds, trade assets and facilitate illicit financial activities.
By bypassing traditional financial intermediaries, DeFi platforms make it harder for regulators and law enforcement to detect and prevent illegal activity. However, blockchain analysis tools have enabled investigators to identify suspicious transactions and trace funds back to their sources, offering a critical resource in combating illicit financial activities within the DeFi space.
Despite the anonymous nature of virtual currency addresses, blockchain explorers and commercial services have allowed law enforcement to trace transactions and link them to specific individuals or organizations. Blockchain technology records every transaction made using virtual currencies, and these records can be analyzed to identify clusters of addresses under the control of a single entity, making it possible to track the flow of funds across international borders.
Through these discoveries, the FBI has strengthened its understanding of how terrorist organizations like Hamas are utilizing cryptocurrency to fund their operations, taking advantage of global cryptocurrency networks and exchanges, including some based in Turkey, to fund illegal activities. The agency continues to monitor and trace such funds, hoping to cut off financial support to terrorist groups and hold those involved accountable.
On March 25 the court approved the FBI’s request, and funds in the amount of $201,400 were transferred to US government-controlled wallets, where they will remain until the legal process is completed. The FBI noted that this action is part of ongoing efforts to curb terrorist financing through emerging digital currencies.
Turkey has been an important safe haven for Hamas operatives who have been granted state protection. They have access to the Turkish banking and financial systems, enabling them to funnel funds across borders while raising significant amounts of money in Turkey, particularly through companies involved in the lucrative housing market. Many senior Hamas figures have been granted Turkish citizenship, with some even changing their names to Turkish ones, while others have received residency to settle in Turkey.
President Erdogan has been an ardent supporter of Hamas, describing Hamas fighters as resistance fighters trying to liberate their lands from occupation. He often receives high-level Hamas delegations in his Ankara office, reaffirming his commitment to stand by the terrorist group. Erdogan branded Israel as the top national security threat for the first time in modern republican history and claimed that Hamas also protects Turkey’s territorial integrity against alleged Israeli plans to annex parts of Turkey as part of a greater Israel conspiracy.
The US Treasury has designated multiple individuals and companies in Turkey for funding Hamas’s terror network in recent years. However, the legal action against the cryptocurrency network in Turkey marks the first such measure sought by US authorities.
