OFAC Sanctions Gaza Now for Hamas Crypto Fundraising

US Treasury Targets Hamas-Linked Media Outlet in New Sanctions

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated "Gaza Now," a prominent Gaza-based online media entity, and its founder, Mustafa Ayash, for providing material support to the terrorist organization Hamas. The May 10, 2024, action highlights the continued focus of U.S. authorities on disrupting illicit financial networks that use cryptocurrency for fundraising. These **OFAC Gaza Now sanctions** add another layer of complexity for compliance teams monitoring terrorism financing channels.

The designation was made pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorists, terrorist organizations, leaders, and those providing support to them. Both Gaza Now and Ayash were added to the Specially Designated Nationals and Blocked Persons (SDN) List as Specially Designated Global Terrorists (SDGTs).

The Entity: "Gaza Now" and its Fundraising Operations

According to the Treasury Department, "Gaza Now" (also operating under the name Gaza Alan) presents itself as an independent news outlet. However, following the October 7, 2023, terrorist attacks by Hamas on Israel, the organization's activities expanded significantly into fundraising.

U.S. officials state that Gaza Now launched public fundraising campaigns ostensibly for humanitarian purposes, but which were intended to benefit Hamas. These campaigns were promoted across its website and social media channels, including Telegram. A key vector for these efforts was the solicitation of donations via cryptocurrency, a method frequently used by illicit actors to obscure the flow of funds.

"Treasury remains committed to degrading Hamas’s ability to finance its terrorist activities, including through online fundraising campaigns that seek to funnel money to the group," stated Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson, in the official announcement.

This action was part of a coordinated effort with the United Kingdom. On the same day, the UK’s Office of Financial Sanctions Implementation (OFSI) announced it had also sanctioned Gaza Now and Mustafa Ayash for their role in supporting Hamas.

Typology: Crowdfunding and Crypto for Terrorist Financing

The case of Gaza Now illustrates a well-documented typology of terrorist financing that leverages modern technology:

* **Dual-Use Persona:** An entity maintains a public-facing, often quasi-legitimate identity (in this case, a news agency) to build an audience and credibility. * **Event-Driven Fundraising:** Following a significant event, the entity pivots to high-volume fundraising, often under a humanitarian pretext. * **Use of Cryptocurrency:** Digital assets are solicited to bypass traditional financial systems, attract a global donor base, and attempt to evade sanctions and AML/CFT controls.

This model allows sanctioned groups like Hamas to tap into a global network of sympathizers, a challenge that U.S. and allied authorities have been actively working to counter. This marks the fifth round of sanctions targeting Hamas and its financial network since the October 7 attacks.

Compliance Implications of the OFAC Gaza Now Sanctions

The designation of Gaza Now carries significant compliance obligations for all U.S. persons and entities, particularly financial institutions and Virtual Asset Service Providers (VASPs).

* **Asset Freezing:** All property and interests in property of Gaza Now and Mustafa Ayash that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. This includes any cryptocurrency or other digital assets held in wallets controlled by U.S.-based exchanges or custodians.

* **Prohibition on Dealings:** U.S. persons are broadly prohibited from engaging in any transactions or dealings with the designated parties. Providing funds, goods, or services—including processing transactions or providing web hosting or social media services—is strictly forbidden.

* **VASP Screening Obligations:** Cryptocurrency exchanges and other VASPs must ensure their sanctions screening programs are effective at identifying and blocking any activity associated with designated entities. While OFAC did not publish specific cryptocurrency addresses in its public press release for this action, the industry is expected to use all available information and blockchain analytics tools to identify and mitigate exposure to Gaza Now-related wallets.

* **Secondary Sanctions Risk:** Foreign financial institutions that knowingly facilitate significant transactions for or on the behalf of Gaza Now or other designated Hamas affiliates could be subject to U.S. correspondent or payable-through account sanctions.

Compliance Takeaway

The **OFAC Gaza Now sanctions** underscore the necessity for financial crime compliance programs to remain agile and technologically aware. The use of social media-driven, crypto-based fundraising campaigns by terrorist groups is an evolving threat. Regulated entities must ensure their sanctions screening processes are robust, their transaction monitoring rules are calibrated to detect such typologies, and their staff are trained on the latest methods used by illicit actors. This action serves as a direct warning that OFAC will continue to target all nodes of a terrorist group's financial ecosystem, from leadership to online fundraisers.

Further reading

• [Nethertrace Company](https://nethertrace.co) — official investigations firm profile.
• [independent Nethertrace reviews on Trustivly](https://trustivly.com/company/www.nethertrace.co) — third-party verified customer reviews.
• [Chainvail's on-chain report](https://chainvail.com) — prior coverage of the same pattern by blockchain-tracing team at Chainvail.