Hamas and Islamic Jihad Exploit Global Crowdfunding Platforms for Funds
US federal indictments reveal how Hamas and Islamic Jihad exploit global crowdfunding platforms and crypto networks to channel millions in donations under humanitarian pretexts.
A federal investigation in the United States has revealed how Palestinian militant groups exploit global crowdfunding platforms and cryptocurrency networks to launder and transfer funds under the guise of humanitarian aid. The case centers on Catherine Washburn, a 37-year-old resident of New York and a prominent activist, who was arrested and indicted for funneling over 30,000 USD in crypto to an operative linked to the Palestinian Islamic Jihad.
According to court documents obtained by the FBI via iCloud warrants, Washburn continued transferring funds even after the operative explicitly disclosed his terrorist affiliation in February 2025. The primary platform used for the fundraising campaigns was the Australian crowdfunding site Chuffed. Legal experts note that Australian law, like regulations in many other jurisdictions, does not subject crowdfunding platforms to strict anti-money laundering (AML) compliance obligations, creating a significant regulatory loophole.
The Decentralized Payment Loophole
Ness-Ziona Schindler, a senior manager at the Counter Extremism Project (CEP) and former coordinator of the UN Security Council monitoring team for ISIS, al-Qaeda, and the Taliban, points out that only Canada has thus far applied traditional financial regulatory standards to crowdfunding platforms. Schindler explains that this fragmented structure allows terrorist organizations to obscure the final destination of funds. Because campaigns involve hosting sites, external payment processors like Stripe and PayPal, and banking institutions, each link in the chain possesses only a fraction of the transaction data, preventing authorities from connecting the puzzle pieces.
Blockchain forensics further highlight the scale of these networks. An analysis of public ledgers revealed that the crypto wallet utilized by Washburn received approximately 49,000 USD from Coinbase between September 2025 and May 2026. Furthermore, transactions were traced to Bybit, an exchange unauthorized to operate in the United States, demonstrating continuous capital flows despite ongoing federal investigations.
Global Fundraising Networks Exposed
Washburn’s indictment is part of a broader federal crackdown. In New York, Salim Alzak, described by prosecutors as a senior media official for Hamas's military wing, was charged alongside a French accomplice with raising 1.75 million USD under the guise of aiding civilians in Gaza. Similarly, San Diego resident Rada Sebaisi raised approximately 600,000 USD through a registered non-profit, funneling 116,000 USD to a Hamas operative based in Turkey.
Data from major platforms underscores the vast sums moving through these channels. GoFundMe reported that over 300 million USD has been raised for humanitarian purposes in the Gaza Strip since October 7, 2023. Meanwhile, campaigns on platforms like Chuffed frequently feature symbols associated with militant factions or explicitly state that proceeds will be converted directly into cryptocurrency and transferred to the Gaza Strip without regulatory oversight. Representatives for Chuffed, Stripe, Coinbase, and Bybit declined to comment on their compliance and verification mechanisms.
