The US Department of the Treasury, along with its Office of Foreign Assets Control (OFAC), made the decision to sanction the Palestinian news network Gaza Now on March 27. This action was taken due to allegations of supporting Hamas, a designated terrorist organization. Along with Gaza Now, several crypto addresses linked to the news network and its affiliated parties were also designated by the Treasury. These addresses included an empty Bitcoin address, two Ethereum addresses with over $2,690 in ETH and other tokens, and five USDT addresses with more than $10,350, although only two of these addresses were found to contain funds.
One of the USDT addresses that was sanctioned was connected to Gaza Now founder Mustafa Ayash. Additionally, the Treasury also placed sanctions on Qureshi Executives, Aakhirah Limited, and their director, Aozma Sultana. While crypto addresses related to Sultana and the companies were not specified, the sanctions were imposed based on allegations that Gaza Now supported Hamas’ fundraising efforts, particularly after the attacks against Israel on October 7, 2023. Al-Qureshi Executives and Aakhirah Limited were named as entities that provided financial support to Gaza Now, as well as advertising.
Brian E. Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the importance of degrading Hamas’ ability to finance its terrorist activities. The joint effort between the US and the UK resulted in full asset freezes in both countries, preventing individuals and entities from conducting business with the sanctioned parties and prohibiting transactions involving their assets. This coordinated effort aimed to disrupt the financial networks that support terrorist activities.
In October 2023, blockchain analytics firm Elliptic publicly reported that Gaza Now had received $21,000 in crypto following the attacks. This amount included $2,000 that was frozen by exchanges and $9,000 in USDT frozen by Tether. The tracking of these transactions highlighted the use of cryptocurrencies in funding illicit activities and the importance of regulatory oversight in the digital asset space.
Overall, the sanctions imposed on Gaza Now and its affiliated parties underscore the ongoing efforts to combat terrorist financing and disrupt the flow of funds to organizations like Hamas. The use of cryptocurrencies in these illicit transactions further complicates the regulatory landscape, prompting authorities to enhance their monitoring and enforcement mechanisms to address emerging threats in the financial sector.
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