Terror Groups Exploit Crowdfunding Gaps for Gaza Aid
Translated & summarized from Mako by baba
U.S. federal cases reveal Hamas and Islamic Jihad allegedly receive funds through crowdfunding platforms disguised as humanitarian aid for Gaza. Catherine Washburn faces charges for sending over $30,000 in crypto to an Islamic Jihad operative via the Australian site Chuffed. Regulatory gaps in crowdfunding laws allow terrorist groups to obscure fund destinations, bypassing traditional controls. Investigations show these groups exploit loopholes, with examples including millions raised for Hamas and transfers to operatives in Turkey.
The story in 6 lines · by baba
- U.S. indictments allege Hamas and Islamic Jihad exploit crowdfunding for Gaza aid, disguised as humanitarian donations.
- Catherine Washburn faces charges for sending over $30,000 in crypto to an Islamic Jihad operative.
- Australian crowdfunding site Chuffed was used to channel funds, highlighting regulatory loopholes.
- Terror groups obscure fund destinations by exploiting weak anti-money laundering rules on crowdfunding platforms.
- Millions have been raised for Hamas and Islamic Jihad operatives through these channels.
- Major crypto exchanges like Binance have admitted to failures in their anti-money laundering controls.
Federal indictments in the U.S. reveal how Hamas and Islamic Jihad allegedly receive funds disguised as humanitarian aid, channeled through crowdfunding platforms, crypto exchanges, and digital wallets. An investigation by Shomrim and N12 magazine highlights regulatory loopholes that facilitate this transfer.
One case involves Catherine Washburn, a New York resident accused of raising over $30,000 in cryptocurrency for an Islamic Jihad operative identified as H.H., even after his affiliation was revealed. She faces federal charges for transferring funds to a designated terrorist organization. The primary platform used for these funds was the Australian crowdfunding site Chuffed.
This exploitation stems from legislative gaps in many countries, including Australia, where crowdfunding platforms are not mandated to comply with anti-money laundering regulations. Hans-Jacob Schindler of the Counter Extremism Project (CEP) explains that these loopholes allow terrorist groups to obscure the final destination of funds, effectively bypassing traditional financial controls. While platforms argue they are not financial institutions, this decentralized structure creates a situation where each entity in the transaction chain possesses only fragmented information.
Washburn's case is one of at least three federal cases alleging that funds raised through crowdfunding for Gaza have been diverted to Hamas or Islamic Jihad. Blockchain analysis and social media posts show how easily funds can be moved with minimal official oversight. This follows previous revelations that crypto wallets officially linked to Hamas and Iran's Revolutionary Guard continued to operate through major exchanges like Binance, which later admitted to failures in its anti-money laundering controls.
Further examples include Salim Al-Zaq, accused of raising $1.75 million, with $600,000 in the U.S., for Hamas under the guise of aid, and Rada Sabasi, who allegedly transferred $116,000 of $600,000 raised to a Hamas operative in Turkey. The popularity of crowdfunding for Gaza is underscored by GoFundMe's report of over $300 million raised for the Strip since October 7th. Some campaigns on Chuffed even use symbols associated with Hamas, and some openly state funds will be converted to crypto and sent to Gaza without regulatory oversight. Chuffed and payment processor Stripe did not respond to inquiries.
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