In a significant move following the October 7 attacks, the US and UK have intensified their crackdown on cryptocurrency channels funding terrorism. Sanctions now target Gaza-based Gaza Now and London entities linked to pro-Hamas activities, marking a major step in countering terror finance.

As a result, the US Treasury's Office of Foreign Assets Control (OFAC) and the UK's Office of Foreign Sanctions Implementation (OFSI) imposed new sanctions on two individuals and three entities earlier this week for alleged involvement in fundraising for Hamas, the Palestinian Sunni Islamist political entity.
Sanctions Target Pro-Hamas Entities: Gaza Now and London-based Firms Under Scrutiny

The sanctioned entities include Gaza Now, a Gaza-based social media outlet, and Al-Qureshi Executives and Aakhirah Limited, both based in London. Mustafa Ayash, the founder of Gaza Now, and Aozma Sultana, the director of the London businesses, were both targeted. CryptoPotato reported that they were discovered to have promoted pro-Hamas content and aided fundraising efforts for the organization.

While Gaza Now has long promoted cryptocurrency donation campaigns, according to Chainalysis' most recent findings, some of the addresses listed in sanctions designations began receiving funds in 2021.

However, Gaza Now ramped up these efforts after October 7, frequently changing addresses due to increased scrutiny following the attacks and the channel’s subsequent growth in followers. As part of these efforts, Gaza Now regularly posted and then deleted posts asking for donations and switched between several cryptocurrencies.

Gaza Now has openly declared support for Hamas and has been running cryptocurrency donation campaigns for quite some time, with some addresses flagged for receiving funds since 2021, according to Chainalysis.

However, the blockchain intelligence firm discovered that the pro-Hamas online media channel frequently changed donation addresses, posted and deleted donation requests, and even switched between various cryptocurrencies as attention increased following the October 7 attacks.

Chainalysis Reveals Gaza Now Funding Sources: Illicit Wallets and Concealed Transactions

Chainalysis also discovered that all inflows came primarily from mainstream cryptocurrency exchanges. The flagged addresses received funds from three wallets previously seized by the National Bulk Cash Smuggling and Counterfeit Task Force (NBCTF), an Iranian exchange in Iran, and a money services business (MSB) in Gaza.

The firm also discovered that Gaza Now's personal wallets received slightly more than $40,000 in cryptocurrency assets. Instant exchanges, crypto tumblers, and smart contracts have also facilitated these fund transfers, indicating that donors attempt to conceal their activity.

Gaza Now's incoming transactions were discovered to be of varying amounts, with the majority being less than $10,000. Chainalysis speculated that larger transfers may have been internal fund transfers by the entity or its associates rather than donations.

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