On March 27, the US Department of the Treasury and its Office of Foreign Assets Control (OFAC) took action against the Palestinian news network Gaza Now. This move came as a result of allegations that the network was supporting Hamas, a designated terrorist organization. The Treasury sanctions not only targeted Gaza Now but also designated several crypto addresses associated with the network and its affiliates.
Among the addresses designated by the Treasury were an empty Bitcoin address and two Ethereum addresses holding over $2,690 worth of ETH and other tokens. Additionally, five USDT addresses were designated, with more than $10,350 being held across these addresses. Interestingly, only two of the USDT addresses actually contained funds, one of which was linked to Gaza Now founder Mustafa Ayash.
In addition to Gaza Now, the Treasury also sanctioned Qureshi Executives, Aakhirah Limited, and their director Aozma Sultana. These entities were believed to have provided financial support and advertising to Gaza Now, furthering the network’s alleged support for Hamas. Notably, crypto addresses related to Sultana or the companies were not designated by the Treasury.
The Treasury justified its actions by stating that Gaza Now had purportedly aided Hamas’ fundraising efforts after the attacks against Israel on October 7, 2023. Furthermore, Al-Qureshi Executives and Aakhirah Limited were identified as providing financial backing to Gaza Now, contributing to the network’s ability to support Hamas.
Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson, emphasized the commitment to disrupting terrorist financing, particularly that of Hamas. The US sanctions were imposed in conjunction with similar measures taken by the UK, which announced a full asset freeze against the sanctioned parties. This joint effort aims to prevent individuals and entities in both countries from engaging in transactions with the designated parties.
Notably, blockchain analytics firm Elliptic reported in October 2023 that Gaza Now had received $21,000 in crypto following the attacks. Of this amount, $2,000 in crypto and $9,000 in USDT were frozen by exchanges and Tether, respectively. This revelation sheds light on the use of cryptocurrency to support illicit activities and highlights the importance of regulatory oversight in the digital asset space.
The Treasury’s sanctions against Gaza Now and its affiliates underscore the ongoing efforts to combat terrorist financing and uphold international security measures. By targeting crypto addresses and entities allegedly linked to Hamas support, authorities aim to disrupt illicit funding networks and prevent further escalation of conflict in the region.