Israel Sanctions Hezbollah Crowdfunding Campaign
The decision comes amid increasing scrutiny over terrorists' exploitation of digital finance platforms
In recent years, Hezbollah and Hamas have increasingly turned to crowdfunding and digital financial tools to fund their operations. These groups have exploited gaps in anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, using platforms like PayPal, cryptocurrency exchanges, and social media to solicit donations.
Israel, which has long been targeted by both organizations, has responded by ramping up efforts to disrupt these digital fundraising mechanisms. A key example is Israel's recent targeting of Hezbollah's crowdfunding platforms, including the December 2024 sanctions on the group's "Exploding Pager" campaign, which sought to raise funds for operatives wounded in an Israeli military operation. Despite these measures, the growing reliance on online platforms by groups like Hamas and Hezbollah raises critical questions about the international community's ability to combat digital terrorism financing and the need for more robust regulatory frameworks.
Hezbollah's Online Fundraising Campaigns
A notable example of Hezbollah’s use of crowdfunding platforms occurred after Israel's September 2024 "Exploding Pager" operation, which targeted Hezbollah operatives. In the aftermath, the group launched a campaign to raise funds for those wounded during the operation, soliciting donations via credit card, PayPal, and bank transfers. Hezbollah raised tens of thousands of dollars to reinforce its personnel and operational capabilities. Israel’s Defense Minister, Israel Katz, responded by imposing sanctions on the campaign, emphasizing that each blocked dollar was a step toward weakening the group. This is part of Israel’s broader effort to dismantle Hezbollah's financial network, which increasingly relies on digital platforms to bypass traditional financial monitoring.

Hamas: Exploiting Digital Financial Platforms
Hamas has also embraced digital fundraising, especially following the October 7, 2023 massacre. The group has exploited online financial platforms, including cryptocurrency exchanges, online payment processors, and social media, to raise funds. Despite being designated a terrorist organization, Hamas has found ways to circumvent sanctions and regulatory gaps.
A key method for Hamas has been the use of cryptocurrencies like Bitcoin, which it used for direct fundraising until Israel targeted its crypto wallets in 2023. Although direct Bitcoin fundraising has ceased, Hamas continues to leverage cryptocurrency through forex brokers, allowing it to launder funds and move money across borders without attracting attention. Additionally, Hamas has utilized platforms like Binance to launder money and has turned to unconventional methods such as online gaming platforms and social media networks like TikTok, where in-game currencies and user donations can be used to fund operations anonymously.
Crowdfunding for Charities: A New Avenue for Terror Financing
Hamas has lost significant territorial control in the Gaza Strip, and crowdfunding has become a critical tool for generating its funds. Much of this fundraising is conducted via cryptocurrencies, online payment services, and even traditional banks, such as Barclays. In this context, funds may not necessarily be laundered but are instead channeled directly through organizations that are either owned by Hamas or taxed by the group. Estimates suggest that millions of dollars have been funneled through OFPs (online financial platforms) into charities affiliated with Hamas, which can then be used to support its operations.

The Role of Jihadist Groups and Cryptocurrency in Crowdfunding
Hamas is not alone in leveraging digital platforms for fundraising. Other jihadist groups, like Al-Qaeda and ISIS, have also used the heightened emotions surrounding Israel's military actions in Gaza to bolster their financial resources. These groups tap into the anger and sympathy for the Palestinian cause to fuel their crowdfunding campaigns. Jihadist entities, particularly Al-Qaeda and ISIS sympathizers, have increasingly utilized digital currencies like Tether (USDT) and Bitcoin, alongside decentralized crypto exchanges, to launder funds.
A significant example emerged following Hamas' October 7, 2023 attack on Israel, when multiple jihadist groups attempted to exploit the conflict for financial gain. Some entities linked to Al-Qaeda have even been observed raising funds under the guise of providing financial aid to Palestinians in Gaza. These campaigns often collect funds through cryptocurrency donations and present themselves as humanitarian efforts, but the reality is that much of the money is funneled to militant groups, including Hamas, to support their operations.
For example, the "Strive with your Money" campaign, purportedly run by Sheikh Zubair Al Ghazi, a former member of the extremist group Hayat Taharir Al Sham, claimed to have raised $500,000 in Tether donations. The campaign promoted itself as a relief initiative for Gaza but was found to be closely linked to terrorist organizations. Similar crowdfunding efforts have been observed in various other campaigns, with donations being sent to Hamas-linked groups under the guise of charity or humanitarian aid. The use of decentralized platforms and cryptocurrencies like Tron and Tether has made it increasingly difficult for authorities to track and intercept these funds.

Israel’s Strategy to Combat Digital Terror Financing
In response to the growing digital financing of terrorism, Israel has adopted a multi-faceted counterterrorism strategy. The Israeli Ministry of Defense has intensified efforts to target digital platforms used by Hamas and Hezbollah, working closely with international intelligence agencies to track and seize illicit funds. The Israeli National Bureau for Counter Terror Financing (NBCTF) has been instrumental in disrupting these groups’ financial operations by working with global financial institutions and tech companies to block accounts and transactions that facilitate terrorism financing.
The growing use of crowdfunding and digital financial platforms by Hamas, Hezbollah, and other jihadist groups is a wake-up call for the international community. As these organizations adapt to new technologies, counterterrorism strategies must evolve accordingly. Israel’s efforts to target digital fundraising mechanisms have proven effective but highlight the need for a more global, coordinated response. A comprehensive approach involving stricter regulation of online financial platforms, better cooperation between nations, and advanced monitoring systems is essential to prevent terrorist organizations from using the internet to fund violence and terror. As the digital landscape continues to evolve, so too must our strategies for safeguarding the global financial system from abuse by terrorist groups.