In a significant move to curb terrorism financing, the U.S. Treasury Department's Office of Foreign Asset Control (OFAC) and the U.K.'s Office of Foreign Sanctions Implementation (OFSI) have targeted Gaza Now, an online media outlet known for promoting cryptocurrency donation campaigns to support Hamas.

The sanctions also extend to Mustafa Ayash, the founder of Gaza Now, alongside other individuals and entities implicated in these fundraising efforts.

Sanctions Following October Attack Following the October 7 attack in Israel, Gaza Now intensified its fundraising campaigns, encouraging donations in both cryptocurrency and fiat.

The media outlet has been particularly active in soliciting financial support for Hamas, leading to a joint sanctioning effort by the US and UK. The sanctions list includes references to Aakhirah Limited and its director, Aozma Sultana, both of which are now under restrictions by OFAC.

"Treasury remains committed to degrading Hamas' ability to finance its terrorist activities, including through online fundraising campaigns," stated US Treasury undersecretary for terrorism and financial intelligence Brian E. Nelson.

Despite the focus on crypto donations, blockchain analytics firm Elliptic reported that Gaza Now managed to raise only $21,000 in cryptocurrency in the weeks following the October 7 attack. However, a report from Chainalysis reveals that Gaza Now's total inflow of funds exceeded $4.4 million in cryptocurrency, predominantly from mainstream exchanges.

Trends in Terrorist Financing A noteworthy trend in the financing of terrorist activities has been the preference for Tether (USDT) on the TRON blockchain. According to TRM Labs, 2023 saw a 125% increase in TRON addresses linked to terrorist financing. This shift towards specific cryptocurrencies highlights the evolving tactics employed by entities like Gaza Now to bypass traditional financial surveillance.

The sanctions represent a crucial step in the ongoing battle against terrorism financing, demonstrating the international community's commitment to leveraging financial intelligence and regulatory tools to disrupt these networks. The collaborative efforts of the US and UK underscore the importance of international cooperation in addressing the challenges posed by digital currencies in the realm of security and terrorism.