5 Indicted in France Over Alleged $2M Crypto Aid to Hamas

French Arrests and U.S. Sanctions

A joint investigation by French and U.S. law enforcement has uncovered a network of non-profit associations accused of leveraging humanitarian appeals to divert cryptocurrency donations to Hamas’ military wing.

French authorities placed five individuals under formal investigation in Paris for organized terrorist financing, money laundering, and breach of trust. The decision follows coordinated arrests executed in Saint-Étienne and Saint-André-de-Cubzac, France, alongside related enforcement actions in the United States.

According to a Le Parisien report, French police arrested three individuals, namely Faouzi Barika, Amel Oualid, and Nordine Barika, as part of an operation coordinated with the U.S. Department of Justice. The report added that the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two France-based associations, Association Baraka and Ensemble C Mieux, as well as Gaza-based Hamas commander Saleem Abdallah Saleem al-Zaq.

U.S. authorities allege the global network raised more than $2 million between 2020 and 2026, including $1.5 million collected after Oct. 7, 2023, with hundreds of thousands directly converted to cryptocurrency. French judicial estimates report approximately $1.1 million sent via these local channels.

Donations were initially collected via consumer Paypal accounts and remitted through Western Union using alternating recipient names to bypass transfer thresholds, according to the report. However, in December 2021, al-Zaq requested transfers in bitcoin and other digital assets to obscure the identity of senders and recipient locations.

After an initial cryptocurrency exchange raised anti-money laundering red flags regarding the source of funds, co-conspirators immediately migrated to alternative trading platforms, the report said.

The case, according to a Fincrime Central report, highlights growing concerns by the Financial Action Task Force regarding the misuse of online crowdfunding platforms and virtual assets for terror financing. Global regulators emphasize that while compliance controls surrounding cross-border donations and non-profits must tighten, anti-money laundering efforts must remain targeted to avoid disrupting legitimate humanitarian aid to Gaza.

Judicial proceedings remain ongoing in both Paris and U.S. federal courts.

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