French authorities have placed five people under formal investigation in Paris after a joint investigation with U.S. law enforcement alleged that a network of non-profit associations diverted humanitarian fundraising to Hamas’ military wing. The case centers on claims that more than $2 million was raised between 2020 and 2026 and that part of the money was later moved through bitcoin and other digital assets.

The proceedings follow coordinated arrests in Saint-Étienne and Saint-André-de-Cubzac in France, alongside related action in the United States. French investigators are pursuing allegations including organized terrorist financing, money laundering, and breach of trust, while parallel cases are also moving through U.S. federal courts.

Alleged fundraising network under scrutiny

According to the reported findings of the joint U.S.-French probe, the suspects were linked to associations that used humanitarian appeals to solicit donations before redirecting funds to Hamas. The source article says French police indicted five individuals on Oct. 2, 2026, over allegations tied to roughly $2 million in crypto transfers to Hamas’ al-Zaq.

Reports identified several of the people under investigation as Faouzi Barika, Amel Oualid, and Nordine Barika, along with others connected to associations sanctioned by the U.S. Treasury’s Office of Foreign Assets Control, or OFAC. The accusations remain allegations, and the judicial process is continuing in both countries.

How investigators say the money moved

U.S. authorities allege the network collected donations through consumer Paypal accounts and then sent money through Western Union. Investigators say alternating recipient names were used to stay below transfer thresholds and avoid detection.

The source article says the transfer methods later changed after Hamas’ al-Zaq allegedly requested payments in bitcoin and other digital assets to make identities harder to trace. It adds that when an initial crypto exchange generated anti-money laundering concerns, the people involved allegedly moved to other trading platforms.

Compliance concerns around crypto and charities

The case is being presented as part of a wider concern among regulators and investigators about the misuse of online crowdfunding, remittance services, and virtual assets for terror financing. In the source report, the Financial Action Task Force, or FATF, is cited as warning that abuse of crypto by charities such as Baraka could lead to tighter rules affecting global Paypal transfers.

At the same time, the article frames the issue as a compliance challenge rather than a rejection of humanitarian fundraising itself. The stated concern is how to strengthen monitoring and enforcement without disrupting legitimate aid activity.

What happens next

Proceedings are now underway in Paris and in U.S. federal courts. The next confirmed steps are the advancement of the criminal cases against the suspects and continued efforts by investigators to trace the digital assets that were allegedly used in the scheme.

For now, the public record described in the source article consists of formal investigations, reported identities, and allegations from law enforcement on both sides of the Atlantic. Further factual findings will depend on what emerges through the French and U.S. court processes.

Source: news.bitcoin.com