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Tawfiq Muhammad Said Al-Law, a hawala operator associated with Hezbollah’s cryptocurrency financing, has been sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), as announced by the federal agency on Tuesday.
Hezbollah Crypto Operator Sanctioned By OFAC
As per the press release from OFAC on Tuesday, Al-Law is accused of “having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hezbollah.”
Treasury has sanctioned 6 entities, 2 individuals, and 2 tankers across 5 nations involved in the financing or transportation of oil for the IRGC-QF, the Houthis, and Hizballah – marking another step in the effort to disrupt IRGC-QF support to terrorist proxies. https://t.co/hSFydBbEXu
— Treasury Department (@USTreasury) March 26, 2024
The U.S. alleges that Al-Law is responsible for supplying digital wallets to Hezbollah related to commodity sales that benefit the Quds Force, a division of the terrorist organization Islamic Revolutionary Guard Corps focused on “cultivating and supporting terrorist groups abroad.”
The Hezbollah crypto operator is also accused of facilitating cryptocurrency transactions for the Qatirji Company, a trucking firm recognized for transporting weapons from Iraq to Syria, managed by the OFAC-designated Muhammad al-Qatirji.
“Treasury remains steadfast in our commitment to utilize our tools against those who aim to finance the illicit activities of the IRGC-QF and its destabilizing proxy groups,” stated Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States will persist in taking measures to disrupt the exploitation of international energy markets to enable terrorist activities.”
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Chainalysis Sheds Light on Hezbollah Crypto Funding Patterns
As reported by blockchain intelligence firm Chainalysis, the Lebanon-based Al-Law was initially identified in June by Israel’s National Bureau for Counter Terror Financing (NBCTF) following their first seizure of cryptocurrency from the terrorist group, which amounted to over $1.7 million in June 2023.
OFAC has now sanctioned Tawfiq Muhammad Said Al-Law, who was previously identified in a seizure order from Israel’s NBCTF for his role in assisting Hezbollah in establishing crypto funding infrastructure. We’ve updated our original blog with the new info. https://t.co/SHrqi9M6AK https://t.co/fIB9vE6OWz
— Chainalysis (@chainalysis) March 26, 2024
Chainalysis claims that Hezbollah acquires a portion of its funding through cryptocurrencies, typically following a pattern where funds “are moved first from financial facilitators to hawala services and OTC brokers, and then to Hezbollah-controlled addresses at mainstream exchanges.”
The terrorist organization, established in Lebanon in 1982, is primarily funded by Iran and is known for its strong opposition to Israel.
Politicians Press For Legislation on Terrorists’ Cryptocurrency Funding
In the meantime, the U.S. Financial Crimes Enforcement Network (FinCEN) is investigating donations amounting to $165 million received by the Palestinian militant group, Hamas, in the lead-up to its deadly attack on Israel on October 7.
Numerous American lawmakers have advocated for enhanced legislation regarding digital assets, with Senator Elizabeth Warren (D-MA) garnering bipartisan support for her bill, the Digital Asset Anti-Money Laundering Act, aimed at preventing terrorist organizations from acquiring cryptocurrency funding.
“(Crypto) is aiding rogue states,” Warren remarked during a hearing last week. “It’s assisting terrorists. It’s enabling criminal organizations to fund their operations on an unprecedented scale.”
The U.S. is currently offering a $10 million reward for information that could disrupt Hezbollah’s financial system through its Rewards for Justice Program.
As the battle against terrorist funding persists, the focus on Hezbollah’s cryptocurrency operations and the necessity for stronger regulations in the cryptocurrency sector becomes increasingly urgent.
The post U.S. Sanctions Hezbollah Crypto Operator Linked to Terrorist Funding appeared first on Cryptonews.
