The US Treasury Department's Office of Foreign Assets Control sanctioned two France-based charities and three individuals on Oct. 2, 2026, alleging the network routed cryptocurrency to Hamas and expanding the digital-asset compliance perimeter that US-regulated exchanges must screen.

OFAC added Association Baraka, Ensemble C Mieux, Faouzi Barika, Amel Oualid and Saleem Abdallah Saleem al-Zaq to its Specially Designated Nationals list, according to a Treasury press release. The agency described al-Zaq as a Gaza-based deputy battalion commander in Hamas's military wing.

Treasury alleges that Barika and Oualid, both based in France, sent hundreds of thousands of dollars in cryptocurrency to al-Zaq. The two fundraisers and their affiliated organizations collected more than $2 million for Hamas between 2020 and 2026, according to the agency.

The Treasury notice distinguishes that broader $2 million fundraising figure from the cryptocurrency transactions specifically attributed to Barika and Oualid. The agency did not state that the entire sum moved through digital assets.

What compliance obligations change for crypto firms?

US exchanges, custodians and payment processors must block property in which the designated parties hold an interest when those assets come within their possession or control, absent an OFAC license or exemption. The agency treats digital assets under the same framework as fiat currency and other property.

A US-regulated crypto company that identifies assets belonging to a blocked person must deny access and report the property to OFAC within 10 business days, with annual reporting obligations thereafter. The agency does not require firms to convert frozen cryptocurrency into dollars, allowing custodians to hold assets in their existing form while blocking sanctioned parties from transacting.

How far do the designations reach beyond the named parties?

The sanctions extend to any entity owned 50% or more, directly or indirectly, by one or more blocked persons. Compliance teams should expect to map ownership structures well beyond the five named designations, since every majority-owned subsidiary now sits within the restricted perimeter as well.

Treasury warned that foreign financial institutions could face secondary sanctions for knowingly facilitating significant transactions for the designated parties. That provision raises compliance exposure for offshore exchanges, OTC desks and payment intermediaries servicing the network.

The provision does not amount to a worldwide freeze on every blockchain transaction touching the sanctioned parties. Actual enforcement depends on jurisdiction, ownership, the involvement of blocked property and, in some cases, the knowledge or significance of the transaction.

What should compliance teams watch next?

The next operational test for crypto firms lies in whether US authorities publish additional wallet addresses, intermediaries or entities tied to the sanctioned network. Any such disclosures could broaden the screening burden beyond this week's five designations and force exchanges to reassess historical exposure to the alleged fundraising operation.

The action continues a series of US moves this year aimed at disrupting militant financing through digital-asset channels. Treasury has previously used Tether's stablecoin infrastructure to freeze close to $500 million tied to Iran, illustrating how stablecoin issuers and on-chain analytics now function as routine enforcement tools alongside conventional banking restrictions. Future designations under the same authorities will likely carry the same crypto-specific reporting clock: 10 business days from the moment a custodian identifies blocked property in its control.