CryptoSlate
The US sanctioned two French charities and three individuals on Oct. 2, alleging they helped channel cryptocurrency and other funds to Hamas. Treasury says French-based fundraisers Faouzi Barika and Amel Oualid sent hundreds of thousands of dollars in cryptocurrency to Saleem Abdallah Saleem al-Zaq, whom the agency described as a Gaza-based deputy battalion commander in Hamas’ military wing. The fundraisers and associated organizations collected more than $2 million for Hamas between 2020 and 2026, though Treasury did not say that the full amount was raised or transferred in digital assets.
Why it matters
OFAC added Association Baraka, Ensemble C Mieux, Barika, Oualid and al-Zaq to its sanctions list. US exchanges, custodians and payment processors must block property in which designated parties have an interest when it comes under their possession or control, unless an exemption or license applies. The restrictions also cover entities owned 50% or more by one or more blocked persons, which can require firms to check beyond the five listed names.
OFAC applies the same sanctions framework to digital assets as to fiat currency and other property. Firms that identify assets belonging to a blocked person must deny access and report the property within 10 business days. Custodians can keep frozen crypto in its existing form, but annual reporting requirements also apply.
Market impact
The designations increase screening and reporting demands for US-regulated crypto businesses and may create exposure for foreign financial institutions. Treasury warned that foreign institutions could face secondary sanctions for knowingly facilitating significant transactions for designated parties. That is not a blanket freeze on every blockchain transaction connected to them; enforcement depends on jurisdiction, ownership and the circumstances of a transaction.
Further wallet, intermediary or entity disclosures could widen the screening workload and prompt firms to review historical exposure to the alleged fundraising network.
Frequently asked questions
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Which organizations and individuals did OFAC designate?
OFAC added Association Baraka, Ensemble C Mieux, Faouzi Barika, Amel Oualid and Saleem Abdallah Saleem al-Zaq to its sanctions list.
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How much cryptocurrency did Treasury attribute to the fundraisers?
Treasury said Barika and Oualid sent hundreds of thousands of dollars in cryptocurrency to al-Zaq. It did not say the broader fundraising total was all raised or transferred in crypto.
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What must US crypto firms do with assets linked to designated parties?
They must block covered property when it comes under their possession or control, deny access and report identified assets to OFAC within 10 business days, unless an exemption or license applies.
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Can sanctions restrictions apply to companies not named on the list?
Yes. The restrictions can cover entities owned 50% or more by one or more blocked persons, so firms may need to screen beyond the five designated names.
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Do the designations freeze every blockchain transaction connected to the parties?
No. Treasury’s warning is not a blanket freeze on every related transaction. Enforcement depends on jurisdiction, ownership, blocked property and, in some cases, a transaction’s significance and the parties’ knowledge.
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