Case File
dc-7035343Court UnsealedUNSEALED Civil Complaint
Date
August 13, 2020
Source
Court Unsealed
Reference
dc-7035343
Pages
87
Persons
0
Integrity
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Summary
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 1 of 11 UNSEALED UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) UNITED STATES OF AMERICA, Plaintiff, v. FACEMASKCENTER.COM - and FOUR FACEBOOK PAGES Defendants. Civil Action No. ____ UNITED STATES’ VERIFIED COMPLAINT FOR FORFEITURE IN REM COMES NOW, Plaintiff the United States of America (the “United States”), by and through the United States Attorney for the District of Columbia, which brin
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Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 1 of 11
UNSEALED
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
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UNITED STATES OF AMERICA,
Plaintiff,
v.
FACEMASKCENTER.COM
- and FOUR FACEBOOK PAGES
Defendants.
Civil Action No. ____
UNITED STATES’ VERIFIED COMPLAINT FOR FORFEITURE IN REM
COMES NOW, Plaintiff the United States of America (the “United States”), by and
through the United States Attorney for the District of Columbia, which brings this verified
complaint for forfeiture in a civil action in rem against the defendant properties, namely: website,
FaceMaskCenter.com
(“Defendant
Property
https://www.facebook.com/pg/facemaskcentertr
https://www.facebook.com/toptantisort
1”)
and
(“Defendant
(“Defendant
www.facebook.com/pg/toptantayttr/988930137790011
(“Defendant
Facebook
pages,
Property
2”),
Property
Property
3”),
4”),
https://www.facebook.com/people/Murat-Çakar/100008437367572 (“Defendant Property 5”)
(collectively, the “Defendant Properties”); and alleges as follows.
NATURE OF ACTION AND THE DEFENDANT IN REM
1.
This in rem forfeiture action arises out of an investigation by Homeland Security
Investigations (“HSI”), the Internal Revenue Service, Criminal Investigations (“IRS-CI”), and the
Federal Bureau of Investigation (“FBI”). Specifically, the United States is investigating the
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 2 of 11
unlawful sale of personal protection equipment (“PPE”) during the national pandemic, and the
related use of such proceeds to support and finance terrorism.
2.
The Defendant Properties are subject to seizure and forfeiture pursuant to 18 U.S.C.
§ 981(a)(1)(G)(i), as domestic and foreign assets of a designated foreign terrorist organization, the
Islamic State of Iraq and the Levant (“ISIS”), which has engaged in planning and perpetrating
federal crimes of terrorism as defined in 18 U.S.C. § 2332b(g)(5), against the United States,
citizens or residents of the United States, and as foreign assets affording any person a source of
influence over any such entity or organization.
JURISDICTION AND VENUE
3.
This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355.
4.
Venue is proper pursuant to 28 U.S.C. § 1355(b)(1)(A).
FACTS GIVING RISE TO FORFEITURE
I.
BACKGROUND
A.
ISIS
5.
On or about October 15, 2004, the U.S. Secretary of State designated al Qaeda in
Iraq (“AQI”), then known as Jam’at al Tawhid wa’al-Jihad, as a Foreign Terrorist Organization
(“FTO”) under Section 219 of the Immigration and Nationality Act (the “INA”) and as a Specially
Designated Global Terrorist under section 1(b) of Executive Order 13224. On or about May 15,
2014, the Secretary of State amended the designation of AQI as an FTO under Section 219 of the
INA and as a Specially Designated Global Terrorist entity under section 1(b) of Executive Order
13224 to add the alias Islamic State of Iraq and the Levant (“ISIL”) as its primary name. The
Secretary also added the following aliases to the FTO listing: the Islamic State of Iraq and al-Sham
(i.e., “ISIS”—which is how the FTO will be referenced herein), the Islamic State of Iraq and Syria,
ad-Dawla al-Islamiyya fi al-‘Iraq wa-sh-Sham, Daesh, Dawla al Islamiya, and Al-Furqan
-2-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 3 of 11
Establishment for Media Production. On September 21, 2015, the Secretary added the following
aliases to the FTO listing: Islamic State, ISIL, and ISIS. To date, ISIS remains a designated FTO.
B.
The Defense Production Act
6.
On March 13, 2020, the President of the United States declared a national
emergency due to the COVID-19 pandemic.
7.
On March 25, 2020, the U.S. Department of Health and Human Services (“HHS”)
issued “Notice of Designation of Scarce Materials or Threatened Materials Subject to COVID-19
Hoarding Measures Under Executive Order 13910 and Section 102 of the Defense Production Act
of 1950.” In the notice, HHS designates the following items, among others, as scarce materials:
o N-95 Filtering Facepiece Respirators, including devices that are disposable halfface-piece non-powered air-purifying particulate respirators intended for use to
cover the nose and mouth of the wearer to help reduce wearer exposure to
pathogenic biological airborne particulates;
o Other Filtering Facepiece Respirators (e.g., those designated as N99, N100, R95,
R99, R100, or P95, P99, P100), including single-use, disposable half-mask
respiratory protective devices that cover the user’s airway (nose and mouth) and
offer protection from particulate materials at an N95 filtration efficiency level per
42 CFR 84.181;
o Protective devices that cover the user’s airway (nose and mouth) and offer
protection from particulate materials at an N95 filtration efficiency level per 42
CFR 84.181;
o Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges;
o Powered Air Purifying Respirator (“PAPR”);
o Portable Ventilators, including portable devices intended to mechanically control
or assist patient breathing by delivering a predetermined percentage of oxygen in
the breathing gas;
...
o Medical gowns or apparel, e.g., surgical gowns or isolation gowns;
o Personal protective equipment (“PPE”) coveralls, e.g., Tyvek Suits;
o PPE face masks, including any masks that cover the user’s nose and mouth and may
or may not meet fluid barrier or filtration efficiency levels;
o PPE surgical masks, including masks that covers the user’s nose and mouth and
provides a physical barrier to fluids and particulate materials;
o PPE face shields, including those defined at 21 CFR 878.4040 and those intended
for the same purpose;
...
-3-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 4 of 11
o Ventilators, anesthesia gas machines modified for use as ventilators, and positive
pressure breathing devices modified for use as ventilators (collectively referred to
as “ventilators”), ventilator tubing connectors, and ventilator accessories as those
terms are described in FDA’s March 2020 Enforcement Policy for Ventilators and
Accessories and Other Respiratory Devices During the Coronavirus Disease 2019
(COVID-19)
Public
Health
Emergency
located
at
https://www.fda.gov/media/136318/download.
C.
Fraud Related to the National Pandemic
8.
The Centers for Disease Control and Prevention (“CDC”) recommends that people
wear cloth face coverings in public settings. The CDC has further stated that it “does not
recommend that the general public wear N95 respirators to protect themselves from respiratory
diseases, including coronavirus (COVID-19). Those are critical supplies that must continue to be
reserved for health care workers and other medical first responders, as recommended by current
CDC guidance.”
See https://www.fda.gov/medical-devices/personal-protective-equipment-
infection-control/n95-respirators-and-surgical-masks-face-masks.
9.
In response to the current COVID-19 pandemic, N95 respirators are in high demand
worldwide and designated as scarce as described above.
10.
DuPont is a U.S. corporation that manufactures items in the field of industry,
consumer goods, worker safety, and healthcare. DuPont manufactures a Tyvek coverall suit,
which is used in hospital and hazardous material cleanups. According to the HHS, “DuPont’s
Tyvek is a versatile material that can provide a barrier against fine particles and chemicals. These
coverall suits are part of the PPE needed for healthcare workers caring for COVID-19 patients.
Other recommended PPE include a N95 respirator or surgical/face mask, a face shield or protective
eyewear, and gloves.” See https://www.hhs.gov/about/news/2020/04/08/hhs-provide-millionstyvek-protective-suits-us-healthcare-workers.html.
-4-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 5 of 11
11.
Due to the COVID-19 pandemic, there is an acute shortage of DuPont Tyvek suits.
Many resellers are out of stock or have limited offerings for sale. The U.S. government has
negotiated an agreement with DuPont to deliver Tyvek Suits to the strategic national stockpile
(“SNS”). The SNS is coordinating through the Federal Emergency Management Agency to deliver
supplies where they are needed most for the COVID-19 response.
D.
Background on Murat Cakar
12.
On November 26, 2018, Zoobia Shahnaz pled guilty to providing material support
to a designated foreign terrorist organization in violation of 18 U.S.C. § 2339B. Specifically,
Shanaz sent more than $150,000 to shell companies, including companies in Turkey that were
fronts for ISIS, and attempted to travel to Syria to join ISIS.
13.
Shanaz used more than a dozen fraudulently obtained credit cards to purchase
approximately $62,000 in Bitcoin, which she converted back to fiat currency to send to the shell
companies.
14.
Financial records reveal that Zoobia Shahnaz sent approximately $100,000 to an
alias of Murat Cakar. Money launderers frequently use aliases when collecting funds from
different sources.
15.
According to a confidential reliable source, Cakar is an ISIS facilitator who is
responsible for managing select ISIS hacking operations, including activity involving Defendant
Property 1.
E.
Fraudulent sales via Defendant Property 1
16.
The scarcity of the above-described PPE has led to numerous fraudulent websites
claiming to sell authentic and certified PPE online.
-5-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 6 of 11
17.
Law enforcement, while in Washington, D.C., reviewed Defendant Property 1 and
found that this site claims to sell multiple types of facemasks and PPE, including disposable
hospital grade face masks, N95 respirator masks, washable facemasks, DuPont Tyvek coverall
suits, and gloves. A recent snapshot of the site’s homepage is displayed below:
18.
On the “About” section of the webpage, Defendant Property 1 states:
FaceMaskCenter is the original online personal protective equipment supplier and
was the first of its kind. Owned and operated by sanitary experts, we pride ourselves
on our product knowledge and quality customer service, so you can have safe and
seamless online shopping experience. We have come a long way since launching
our website in 1996. We started off small and grew our range to cater for
everybody’s health products needs. We now are serving online with our range of
face masks, gloves, goggles, protective suits and thermometers.
19.
The claim that the website launched in 1996 is demonstrably false. Publicly-
available website registration records revealed that the website was created from an IP address in
Turkey on February 26, 2020. Additionally, the site is not “owned and operated” by sanitary
experts.
-6-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 7 of 11
20.
The site indicates that it accepts payment by Visa, Mastercard, and PayPal, all of
which are U.S.-based financial institutions.
21.
Defendant Property 1’s section that sells N95 respirators states:
NOTE: Not all N95 masks are equal. Most are for industrial use. The N95
respirator offered by FaceMaskCenter is FDA cleared for medical use because it
passed stringent fluid resistance testing. This is widely considered critical since
airborne viruses transfer as fluid droplets.
•
•
•
NIOSH [National Institute of Occupations Safety & Health] approved.
FDA cleared.
Meets CDC Guidelines for infection control of Flu, SARS, Corona Virus,
Tuberculosis, Anthrax, Smallpox and more.
...
This respirator has been evaluated and approved by The National Institute of
Occupations Safety & Health (NIOSH) and is cleared by the U.S. Food & Drug
Administration (FDA). This product is a N95 Respirator deemed “Surgical” by the
FDA. It is not a Surgical Mask. “Surgical N95 Respirators” undergo more rigorous
testing and are designed to both prevent the spread of germs and protect the wearer's
respiratory system.
(emphasis in original).
22.
A review of the masks purportedly for sale on the site revealed that the masks are
produced by a Turkish company. In spite of the Defendant Property 1’s above statements, this
Turkish manufacturer’s respirators are not on the list of FDA/NIOSH approved N-95 respirators.
23.
A customer in the United States contacted Defendant Property 1 to purchase N95
masks and other PPE for hospitals, nursing houses, and fire departments.
24.
A Syrian national residing in Turkey responded to this request stating that
Defendant Property 1 had such products for sale, and that they were certified.
25.
The Syrian national stated that he could easily provide up to 100,000 N95 masks,
which he claimed to have in his possession.
-7-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 8 of 11
26.
Defendant Property 1 also advertises the sale of DuPont Tyvek suits. Whereas
other sites have severely restricted the quantity of any such items for sale (in order to prevent
hoarding/price gouging on resale) or simply do not have any stock, Defendant Property 1 allows
customers to place orders for any desired quantity of such items with no limits. This is inconsistent
with the overall shortage of PPE, to include DuPont Tyvek suits.
F.
Multiple Cakar Controlled Facebook Pages Promote Defendant Property 1
27.
Defendant Property 1’s related Facebook page is Defendant Property 2. Defendant
Property 2’s first post was on March 10, 2020, with a photo from Defendant Property 1. Defendant
Property 2 posts multiple images and videos referencing Defendant Property 1 and Defendant
Property 2 identifies Defendant Property 1
28.
Cakar, while in Turkey, registered Defendant Property 2.
29.
Cakar also created Defendant Property 3 and Defendant Property 4 which he uses
to further the aforementioned PPE scheme.
30.
Since 2015, Defendant Property 3 has primarily advertised the sale of t-shirts.
Likewise, since 2014, Defendant Property 4 has also primarily advertised the sale of clothing
products. One common method of money laundering is to claim that the funds were received
through a licit business, such as clothing sales.
31.
Law enforcement is aware that individuals who operate fraudulent websites often
use other fraudulent companies under their control to advertise for the other sites.
32.
On or about March 17, 2020, Defendant Property 3 and Defendant Property 4
posted an advertisement for Defendant Property 1. Subsequent to this post, Defendant Property 4
posted two additional advertisements for face masks.
-8-
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 9 of 11
33.
Defendant Property 3 and Defendant Property 4 are linked to Defendant Property 5,
which is a Facebook page in Cakar’s name.
COUNT ONE – FORFEITURE
(18 U.S.C. § 981(A)(1)(G)(i))
34.
The United States incorporates by reference the allegations set forth in Paragraphs
1 to 33 above as if fully set forth herein.
35.
ISIS is a designated foreign terrorist organization.
36.
The Defendant Properties are associated with ISIS.
37.
As such, the Defendant Properties are subject to forfeiture to the United States,
pursuant to 18 U.S.C. § 981(a)(1)(G)(i), as assets of a foreign terrorist organization engaged in
planning or perpetrating any federal crime of terrorism (as defined in section 2332b(g)(5)) against
the United States, citizens or residents of the United States, or their property, and as assets
affording any person a source of influence over any such entity or organization.
*
*
-9-
*
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 10 of 11
PRAYER FOR RELIEF
WHEREFORE, the United States prays that notice issue on the Defendant Properties as
described above; that due notice be given to all parties to appear and show cause why the forfeiture
should not be decreed; that judgment be entered declaring that the Defendant Properties be
forfeited to the United States for disposition according to law; and that the United States be granted
such other relief as this Court may deem just and proper, together with the costs and disbursements
of this action.
Dated: July 31, 2020
Washington, D.C.
Respectfully submitted,
MICHAEL R. SHERWIN,
N.Y. Bar Number 4444188
ACTING UNITED STATES ATTORNEY
By:
/s/ Zia Faruqui
ZIA M. FARUQUI, D.C. Bar No. 494990
JESSICA BROOKS
Assistant United States Attorneys
Fourth Street, NW
Washington, DC 20530
(202) 252-7566 (main line)
and
DANIELLE ROSBOROUGH (D.C. Bar No.
1016234)
Trial Attorney
National Security Division
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20004
Office: (202) 514-0849 (main line)
Attorneys for the United States of America
- 10 -
Case 1:20-cv-02142-RC *SEALED* Document 3 Filed 08/05/20 Page 11 of 11
VERIFICATION
I, Joseph Consavage, a Special Agent with the Homeland Security Investigation, declare
under penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing Verified Complaint for
Forfeiture In Rem is based upon reports and information known to me and/or furnished to me by
other law enforcement representatives and that everything represented herein is true and correct.
Executed on this 31st day of July, 2020.
/s/ Joseph Consavage
Special Agent Joseph Consavage,
Homeland Security Investigation
_
I, Christopher Janczewski, a Special Agent with the Internal Revenue Service-Criminal
Investigations, declare under penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing
Verified Complaint for Forfeiture In Rem is based upon reports and information known to me
and/or furnished to me by other law enforcement representatives and that everything represented
herein is true and correct.
Executed on this 31st day of July, 2020.
/s/ Chris Janczewski
_
Special Agent Chris Janczewski, IRS-CI
I, Nicholas Rivers, a Special Agent with the Federal Bureau of Investigation, declare under
penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing Verified Complaint for
Forfeiture In Rem is based upon reports and information known to me and/or furnished to me by
other law enforcement representatives and that everything represented herein is true and correct.
Executed on this 31st day of July, 2020.
/s/ Nicholas Rivers
Special Agent Nicholas Rivers
FBI
_
- 11 -
Case 1:20-cv-02142-RC *SEALED* Document 3-1 Filed 08/05/20 Page 1 of 2
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The JS-44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and services of pleadings or other papers as required
by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the
Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed.
Listed below are tips for completing the civil cover sheet. These tips coincide with the Roman Numerals on the cover sheet.
,
COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF/DEFENDANT (b) County of residence: Use 11001 to indicate plaintiff if resident
of Washington, DC, 88888 if plaintiff is resident of United States but not Washington, DC, and 99999 if plaintiff is outside the United States.
,,,
CITIZENSHIP OF PRINCIPAL PARTIES: This section is completed only if diversity of citizenship was selected as the Basis of Jurisdiction
under Section II.
,9
CASE ASSIGNMENT AND NATURE OF SUIT: The assignment of a judge to your case will depend on the category you select that best
represents the primary cause of action found in your complaint. You may select only one category. You must also select one corresponding
nature of suit found under the category of the case.
9,
CAUSE OF ACTION: Cite the U.S. Civil Statute under which you are filing and write a brief statement of the primary cause.
9,,,
RELATED CASE(S), IF ANY: If you indicated that there is a related case, you must complete a related case form, which may be obtained from
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Because of the need for accurate and complete information, you should endure the accuracy of the information provided prior to signing the form.
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 1 of 52
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
)
UNITED STATES OF AMERICA,
)
)
Plaintiff,
)
)
v.
)
)
FIFTY-THREE VIRTUAL CURRENCY
)
)
ACCOUNTS,
)
ONE HUNDRED TWENTY-SEVEN
)
VIRTUAL CURRENCY PROPERTIES,
)
)
)
FIVE ACCOUNTS HELD AT
Civil Action No. 20-cv-2227
)
FINANCIAL INSTITUTION 1,
)
)
THE ALQASSAM.NET DOMAIN,
)
)
THE ALQASSAM.PS DOMAIN,
)
)
-- and –
)
)
THE QASSAM.PS DOMAIN
)
)
Defendants.
UNITED STATES’ VERIFIED COMPLAINT FOR FORFEITURE IN REM
COMES NOW, Plaintiff the United States of America, by and through the United States
Attorney for the District of Columbia, and brings this Verified Complaint for Forfeiture In Rem
against the defendant properties, namely: fifty-three virtual currency accounts (Defendant
Properties 1, 2, 3, 131 through 180), one hundred and twenty-seven virtual currency properties
(Defendant Properties 4 through 130), five accounts held at Financial Institution 1 (Defendant
Properties 181 through 185), the alqassam.net domain (Defendant Property 186), the
alqassam.ps domain (Defendant Property 187), and the qassam.ps domain (Defendant Property
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 2 of 52
188) collectively, the “Defendant Properties”, which are listed in Attachment A. The United
States alleges as follows in accordance with Rule G(2) of the Federal Rules of Civil Procedure,
Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions.
NATURE OF ACTION AND THE DEFENDANTS IN REM
1.
This in rem forfeiture action arises out of an investigation by the Internal Revenue
Service – Criminal Investigation’s Cyber Crimes Unit (“IRS-CI”), Homeland Security
Investigations (“HSI”), and Federal Bureau of Investigation (“FBI”) into online fundraising
activities conducted by Hamas’s military wing, the al-Qassam Brigades. The fundraising was
facilitated, in part, through the use of social media and the organization’s three official websites,
Defendant Property 186, Defendant Property 187, and Defendant Property 188 (collectively
the “al-Qassam Brigades’ Websites”).
2.
The owners of the Defendant Properties, as well as the users and administrators of
the al-Qassam Brigades’ Websites, knowingly and willfully conspired with others, and acted
individually, to commit the following violations: laundering monetary instruments, in violation of
18 U.S.C § 1956(a)(2), operating unlicensed money transmitting businesses, in violation of 18
U.S.C. § 1960, and providing material support or resources to a designated foreign terrorist
organization, namely Hamas, in violation of 18 U.S.C § 2339B. As such, the Defendant Properties
are subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A), as property involved in, or traceable
to, a financial transaction in violation of 18 U.S.C. §§ 1956 or 1960.
3.
The Defendant Properties are also subject to forfeiture pursuant to 18 U.S.C.
§§ 981(a)(1)(G)(i), as all assets, foreign or domestic, or sources of influence, of Hamas, which is
a designated foreign terrorist organization, engaged in planning or perpetrating any federal crime
of terrorism (as defined in 18 U.S.C. § 2332b(g)(5)) against the United States, citizens or residents
2
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 3 of 52
of the United States, or their property, and as assets affording any person a source of influence
over any such entity or organization.
JURISDICTION AND VENUE
4.
This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355.
These statutes confer original jurisdiction to district courts of all civil actions, suits, or proceedings
commenced by the United States and any action for the forfeiture of property incurred under any
act of Congress.
5.
Venue is proper pursuant to 28 U.S.C. §§ 1355(b)(1)(A) & (b)(2) and 28 U.S.C.
§ 1395(c).
FACTS GIVING RISE TO FORFEITURE
I.
DEFINITION OF TERMS
A. Bitcoin
6.
Bitcoin (“BTC”) is a decentralized virtual currency, which is supported by a peer-
to-peer network. All transactions are posted to a public ledger, called the Blockchain (which can
be seen at https://Blockchain.info). Although transactions are visible on the public ledger, each
transaction is only listed by a complex series of numbers that do not identify the individuals
involved in the transaction. This feature makes BTC pseudo-anonymous; however, it is possible
to determine the identity of an individual involved in a BTC transaction through several different
tools that are available to law enforcement. For this reason, many criminal actors who use BTC
to facilitate illicit transactions online (e.g., to buy and sell drugs or other illegal items or services)
look for ways to make their transactions even more anonymous.
7.
A BTC address is a unique token; however, BTC is designed such that one person
may easily operate many BTC accounts. Like an e-mail address, a user can send and receive BTC
with others by sending BTC to a BTC address. People commonly have many different BTC
3
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 4 of 52
addresses and an individual could theoretically use a unique address for every transaction in which
they engage. A BTC user can also spend from multiple BTC addresses in one transaction;
however, to spend BTC held within a BTC address, the user must have a private key, which is
generated when the BTC address is created and shared only with the BTC-address key’s initiator.
Similar to a password, a private key is shared only with the BTC-address key’s initiator and ensures
secured access to the BTC. Consequently, only the holder of a private key for a BTC address can
spend BTC from the address. Although generally the owners of BTC addresses are not known
unless the information is made public by the owner (for example, by posting the BTC address in
an online forum or providing the BTC address to another user for a transaction), analyzing the
Blockchain can sometimes lead to identifying both the owner of a BTC address and any other
accounts that the person or entity owns and controls.
8.
BTC is often transacted using a virtual-currency exchange, which is a virtual-
currency trading platform and bank. Virtual currency exchanges typically allow trading between
the U.S. dollar, other foreign currencies, BTC, and other digital currencies. Many virtual-currency
exchanges also act like banks and store their customers’ BTC. Because these exchanges act like
banks, they are legally required to conduct due diligence of their customers and have anti-money
laundering checks in place. Virtual currency exchanges doing business in the United States are
regulated under the Bank Secrecy Act, codified at 31 U.S.C. § 5311 et seq., and must collect
identifying information of their customers and verify their clients’ identities.
9.
BTC is just one of the virtual currencies and tokens available for trading on most
virtual currency exchanges.
Some of the other major virtual currencies, based on market
capitalization, include Ethereum (ETH), XRP, EOS, Tether (USDT), BSV, Stellar (XLM), and
LEO.
4
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 5 of 52
B. Blockchain Analysis
10.
While the identity of the BTC address owner is generally anonymous (unless the
owner opts to make the information publicly available), law enforcement can identify the owner
of a particular BTC address by analyzing the Blockchain. The analysis can also reveal additional
addresses controlled by the same individual or entity. For example, a user or business may create
many BTC addresses to receive payments from different customers. When the user wants to
transact the BTC that it has received (for example, to exchange BTC for other currency or to use
BTC to purchase goods or services), it may group those addresses together to send a single
transaction. Law enforcement uses sophisticated, commercial services offered by several different
Blockchain-analysis companies to investigate BTC transactions. These companies analyze the
Blockchain and attempt to identify the individuals or groups involved in the BTC transactions.
Specifically, these companies create large databases that group BTC transactions into “clusters”
through analysis of data underlying BTC transactions.
11.
Through numerous unrelated investigations, law enforcement has found the
information provided by these companies to be reliable. The third-party Blockchain-analysis
software utilized in this case is an anti-money laundering software used by banks and law
enforcement organizations worldwide.
This third-party Blockchain analysis software has
supported many investigations, and been the basis for numerous search and seizure warrants, and
as such, has been found to be reliable. Computer scientists have independently shown that they
can use “clustering” methods to take advantage of clues in how BTC is typically aggregated or
split up to identify BTC addresses and their respective account owners.
12.
Since the Blockchain serves as a searchable public ledger of every BTC transaction,
investigators may trace transactions to BTC exchangers.
5
Because those exchanges collect
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 6 of 52
identifying information about their customers, subpoenas or other appropriate process submitted
to these exchangers can, in some instances, reveal the true identity of the individual responsible
for the transaction.
C. Money Service Businesses
13.
18 U.S.C. § 1960(a) provides in relevant part that “[w]hoever knowingly conducts,
controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting
business” shall be guilty of a federal offense. The term “money transmitting business” is defined
as “includ[ing] transferring funds on behalf of the public by any and all means including but not
limited to transfers within this country or to locations abroad by wire, check, draft, facsimile, or
courier.” 18 U.S.C. § 1960(b)(2).
14.
Under 18 U.S.C. § 1960(b)(1)(B), it is a violation to operate a money transmitting
business without “comply[ing] with the money transmitting business registration requirements
under section 5330 of title 31, United States Code, or regulations prescribed under such section.”
In turn, 31 U.S.C. § 5330(a)(1) requires anyone who owns or controls a money transmitting
business to register with the Secretary of the Treasury.
15.
Federal regulations issued pursuant to 31 U.S.C. § 5330 define a category of
“Money services businesses” (“MSBs”) which include “Money transmitter[s].”
31 C.F.R.
§ 1010.100(ff)(5). Money transmitters are defined broadly, and include anyone who “accept[s] . . .
currency, funds, or other value that substitutes for currency from one person and . . . transmit[s] . . .
currency, funds, or other value that substitutes for currency to another location or person by any
means,” as well as “[a]ny other person engaged in the transfer of funds.
§ 1010.100(ff)(5)(i)(A)-(B).
31 C.F.R.
All MSBs are required to register with the Financial Crimes
6
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 7 of 52
Enforcement Network (“FinCEN”), a division of the U.S. Department of Treasury, unless specific
exemptions apply. 31 C.F.R. § 1022.380(a)(1).
7.
Virtual currency exchangers qualify as a “money transmitting business” within the
meaning of both 18 U.S.C. § 1960(b)(1) and 31 U.S.C. § 5300. See United States v. Harmon, No.
19-CR-395 (BAH) (D.D.C. July 24, 2020); United States v. E-Gold, Ltd., 550 F. Supp. 2d 82, 8797 (D.D.C. 2008).
16.
FinCEN has issued formal guidance classifying virtual currency exchangers as
MSBs, and thus subject to the federal registration requirement. See Dep’t of the Treasury FinCEN
Guidance, Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using
Virtual Currencies, FIN-2013-G001 (Mar. 18, 2013), at 3 (“An administrator or exchanger that
(1) accepts and transmits a convertible virtual currency or (2) buys or sells convertible virtual
currency for any reason is a money transmitter under FinCEN’s regulations, unless a limitation to
or exemption from the definition applies to the person.”) (emphasis in original).
17.
Virtual currency exchangers abroad are covered by 18 U.S.C. § 1960, and thereby
must comply with the registrations requirements of 31 U.S.C. § 5300, if, as part of their money
transmitting business, they “transfer[] funds on behalf of the public by any and all means including
but not limited to transfers within this country or to locations abroad by wire, check, draft,
facsimile, or courier.” See 18 U.S.C. § 1960(b)(2) (emphasis added). Notably, the statute
explicitly contemplates the regulation of foreign commerce under its purview, defining “money
transmitting businesses,” as those affecting “interstate or foreign commerce.” See 18 U.S.C.
§ 1960(b)(1) (emphasis added).
18.
FinCEN has also issued formal guidance classifying “foreign entities” who engage
in MSB “activities in the United States” as subject to the federal registration requirement. See
7
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 8 of 52
Dep’t of the Treasury FinCEN Guidance, FinCEN Clarifies Money Services Businesses
Definitions Rule Includes Foreign-Located MSBs Doing Business in U.S., FIN-2011-3 (Jul. 18,
2011), at 1. “This requirement arose out of the recognition that the Internet and other technological
advances make it increasingly possible for persons to offer MSB services in the United States from
foreign locations.” Id. at 2.
II.
CURRENT INVESTIGATION OF TERRORIST FUNDING
A. Designation of Hamas and the al-Qassam Brigades
19.
On October 8, 1997, by publication in the Federal Register, the United States
Secretary of State designated Hamas as a Foreign Terrorist Organization (“FTO”) pursuant to
Section 219 of the Immigration and Nationality Act. On October 31, 2001, the Secretary of State
also designated Hamas as a Specially Designated Global Terrorist under Executive Order 13224.
As part of this designation, the Secretary of State listed a number of aliases for HAMAS, including,
Izz Al-Din Al-Qassim Brigades, Izz Al-Din Al-Qassim Forces, Izz Al-Din Al Qassim Battalions,
Izz al-Din Al Qassam Brigades, Izz al-Din Al Qassam Forces, and Izz al-Din Al Qassam
Battalions. To date, Hamas remains a designated FTO.
20.
The Office of Foreign Assets Control (“OFAC”) has also targeted Hamas with three
sanctions programs, codified at 31 C.F.R. Part 594, 31 C.F.R. Part 595, and 31 C.F.R. Part 597.
21.
The State Department’s 2018 Country Report on Terrorism noted that the al-
Qassam Brigades branch of Hamas had conducted numerous attacks, including large-scale suicide
bombings against civilian targets in Israel. This annual reporting also explains that Hamas and its
components, including the al-Qassam Brigades, rely heavily on donations from Palestinian
expatriates around the world, including in North America.
8
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 9 of 52
B. Terrorist Fundraising Campaign
22.
The al-Qassam Brigades began a BTC fundraising campaign in early 2019. This
campaign progressed in three stages as outlined below. In stage one, the al-Qassam Brigades
solicited donations from supporters and requested BTC be sent to a single BTC address,
Defendant Property 1, hosted at a U.S.-based BTC exchange. In stage two, the al-Qassam
Brigades requested donations be sent to a single BTC address, Defendant Property 4, located
within the al-Qassam Brigades’ controlled infrastructure, rather than at a third-party hosted BTC
exchange. Finally, in stage three, the al-Qassam Brigades developed and relied on technology that
generated new unique BTC addresses for each donation, specifically, Defendant Properties 14130.
a. STAGE ONE
23.
Stage one involved the following Defendant Properties, as described below:
Defendant
Property
#
1
3PajPWymUexhewHPczmLQ8CMYatKAGNj3y
2
3LrjAKNfnyX2BGmor6ZNxvZutM1Q3KEejZ
3
1HrPF5CPqJiWbkroxheU5LcHL7bZNDi76v
177
1D9jDMKhss9vtmeRWeBA6tmts52JoQyezk
178
1JJrTJgxSNqEPDrRBogD7odjvCwuog9Cqb
24.
Account Identifier
On or about January 31, 2019, a user with the registered name, “alqassam brigades”
opened Defendant Property 1 at Virtual Currency Exchange 1 and was given a BTC deposit
address starting with 3Paj. The user of Defendant Property 1 provided Virtual Currency
Exchange 1 with the e-mail address and a Palestinian phone number to register the account.
9
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 10 of 52
Defendant Property 1 was accessed from an IP addresses located within Gaza in the Palestinian
territory.
25.
Also on or about January 31, 2019, the al-Qassam Brigades began a public
fundraising campaign, soliciting BTC donations on social media. Specifically, a Twitter account
identified as the “official account of the Al-Qassam Brigades” posted a call for supporters to
“Donate for Palestinian Resistance via Bitcoin.” The post displayed Defendant Property 1, the
aforementioned BTC deposit address starting with 3Paj, as the address to which donors could send
their funds to the al-Qassam Brigades.
26.
That same day, on or about January 31, 2019, Defendant Property 2 was created
at Virtual Currency Exchange 1 and assigned an account number ending in 1ae06. The account
was registered with a Palestinian phone number and the email address [email protected].
The Palestinian IP address used to create Defendant Property 2 resolved to the same Palestinian
IP address that was used to log into Defendant Property 1 on the same date. Additionally,
10
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 11 of 52
Defendant Property 1 and Defendant Property 2 were created within a couple hours of each
other, as were their respective linked email accounts. Defendant Property 2 conducted no
transactions.
27.
Persons creating “burner accounts” often create multiple accounts at the same time
from the same computer. Defendant Property 2 appears to be a burner account used by the same
co-conspirators seeking donations for the al-Qassam Brigades.
28.
On or about May 11, 2017, Defendant Property 3 was created at Virtual Currency
Exchange 1. The account was registered using a physical address in the Palestinian territory, a
verified Palestinian phone number, and was logged into from IP addresses resolving to the
Palestinian territory.
29.
Based on Blockchain analysis, on or about January 31, 2019, Defendant
Property 3 sent two BTC payments, each worth approximately $1, to Defendant Property 1.
These transactions occurred within hours of the opening of Defendant Property 1. These types
of payments are consistent with “test transactions,” typically nominal deposits, which in this case
were likely intended to confirm that Defendant Property 1 was open and able to receive funds.
30.
Defendant Property 3 also received funds from two additional accounts that
belonged to the same accountholder, Defendant Property 177 and Defendant Property 178,
which were held at Virtual Currency Exchange 11 and Virtual Currency Exchange 9, respectively.
b. STAGE TWO
31.
Defendant
Property
#
4
Stage two involved the following Defendant Properties, as described below:
Account Identifier
17QAWGVpFV4gZ25NQug46e5mBho4uDP6MD
11
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 12 of 52
5
1KDFQFnFfy9gJgXF18U3vpfeJQAeixPp1K
6
1HQhQfFPesW8znZdsdizHnA8ggvtc6NJ4k
7
1AW9z69zW2Wpg5i2gFs9YzkvZLjzDNx5VG
8
14EwXyqiB3yVLDJ1zVNevvEDpyyhBdnzjk
9
14S3GUHsqSY2am6yCPqEhb72sECUUbnRtE
10
14dRMzjmatz7zkc7iRYaitMvw4YPxXJYHf
11
1JJQceg2YZuCsJxUvAAVwU2YH4wDwxQoy6
12
1EQFWyM1gTus8cnuwHQErnaED3um1py2pF
13
19ncZQTCBfvfW5bsM7v3Pe7t6nzu4GZy4r
32.
On or about February 1, 2019, the al-Qassam Brigades expanded its social media
fundraising campaign, seeking additional BTC donations to be sent to a new BTC deposit address
starting with 17QAW (“Defendant Property 4”). Defendant Property 4 was registered using
the same email account used to register Defendant Property 1.
12
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 13 of 52
33.
Using commercially-available reliable third-party Blockchain analytics software,
law enforcement learned that Defendant Property 4 has been clustered (a process described
above) with nine other BTC addresses, specifically, Defendant Properties 5 through 13. These
ten BTC addresses comprise stage two, as the clustering together of BTC addresses reflects
common ownership/control.
34.
As of August 7, 2020, Blockchain analysis shows that the stage two operation has
collected approximately 1.16938125 BTC via 65 transactions.
c. STAGE THREE
35.
The first two stages relied on static BTC addresses, i.e., a single fixed account
number that could receive donations from anyone. Virtual currency exchanges could easily
monitor the single static address on the Blockchain and evaluate their exposure to this terrorist
funding campaign, and subsequently began to freeze transactions associated with these BTC
addresses.
36.
In stage three, the al-Qassam Brigades, instead, began providing donors on its
official website, Defendant Property 186, which law enforcement accessed while in Washington,
D.C., a dynamic BTC address system, wherein the website created a new unused BTC address for
each individual wishing to fund the al-Qassam Brigades. Like an e-mail address, there is typically
no charge to create a new BTC address. There are hundreds of millions of BTC addresses currently
in use.
37.
The al-Qassam Brigades’ website included a reCAPTCHA human verification
system provided by Google so that BTC addresses could not be harvested automatically. The alQassam Brigades also created two additional official sites located on the Palestinian domain to
raise BTC for the campaign, Defendant Property 187 and Defendant Property 188. All three
13
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 14 of 52
websites, according to subpoena, publicly available information, and search warrant returns, were
registered and administered by the same individual.
38.
One of the Palestinian domain sites, Defendant Property 187 appears identical to
Defendant Property 186, providing the exact same information and instructions for contacting
and donating to the organization.
39.
The other official website, Defendant Property 188, while not identical, relies on
the same military photographs and information as the other two websites. Additionally, it similarly
seeks BTC donations, linking users, with a click on the below image, directly to Defendant
Property 187 for this purpose.
14
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 15 of 52
40.
Clicking on the BTC symbol at the bottom right corner of the homepage of
Defendant Property 186 and Defendant Property 187, shown here, led to a BTC donation page
embedded within the same domain. Donors clicked on this donation page, which generated 117
unique BTC addresses. These 117 addresses represent Defendant Properties 14-130.
15
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 16 of 52
41.
Stage three is still active and ongoing.
As of August 7, 2020, Defendant
Properties 14 through 130 received approximately 2.39361558 BTC via 124 transactions. Many
of these BTC addresses clustered together within third-party Blockchain analytics software
demonstrating common ownership. These Properties are identified as follows:
Defendant
Property #
14
31hnjnw7Xe8e183u2qffHt4qpLFLfergmF
15
31idyYGpkmev8S1Kve8TvHExYdFeDM2saV
16
31iUH4sRXJt9F8MnnpVY1HAxUZ1qZQ4Z7x
17
31iZbakXU1arYMMyiCgceipKjUxCF19N5j
18
31jbxdhDYxkB6ULhsk7VMLsNB3KQgTREUZ
19
31k6eLZLTP1adv7EqZNkbnd8Jm1oHnULuP
20
31mnD8FtBVyHh6CCFsUwiTFHuu6RMTCjcR
21
31mUJqpqH8HLsGaxMdARTgdPHkbWbq2yuQ
22
31n5MTyfWEFFm7pXf7e9Qt2i5Ec8jKA1py
23
31nob3VbXpByQZBuvHdFF1vcwjBoSd1xJF
24
31o5C1u66MjVZMrcJHzHYuQFk9XuDUznqX
25
31osZ4w7nPC2wbezG3fhu7fraUNBeEfdyA
26
31ot27eWxmxbQtVWmpiSyuakJNKqwc4uSZ
27
31otG9J9PWZ5GuUaAFVwuzP5nrAX6sVNh8
28
31p9vft5AqYgt7uPxTXCis97zHE2E8RkTG
29
31pmPV1XpevjEUzPtmr5sDXm8s4YzTyaS2
30
31pWw13YTX5h9EY6T5hjcRDT4bDF6cQMXR
31
31pYNazDxCwnhAyVCNqpELTE66qi4KcEA5
Account Identifier
16
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 17 of 52
32
31qeJQa6Y6LL74HDBe5ZkuE7GxfMvUAh7t
33
31qk3S4hqj5KfedbVo45nFdvrXQ6TnYtY2
34
31qMgW6GideWcAHTdYf4GN3UEKEzVTP6jb
35
31qv732ydN8kbUyLYbv5QBNDyHRbRqL5wo
36
31rbKDq1pwA1GLHwa82cySVrkTo1R6htMK
37
31rhvmw3BPW9bYXvV6RJ4ZuwgUP2QbN6Wp
38
31rQoLSQkVa2SQhgRByhrM5e69KaKPntpp
39
31rZQb9DM2Fz5Yqi47UTsZ3FttETRAvbeu
40
31s1NZm8S16JsedBDJcSX815ikhNCkro28
41
31spTrrz7g2nCtf7JPVFrsAwiQi6SGJygU
42
31tKBTcV4bWYLEXzSwByPuJWmEnWkNUXNs
43
32LjBurh7tKVpxmhhEhfPUnKYzV7jxzane
44
33mskKAPj8RVaFcSaCDtWtpCQYNCp4dFLw
45
344Aycb4ZzEZXEF26qgbGrfYjFEqMJbN6F
46
38vt9RRxHJboCyFbTieWT1sFKxbacKeBgg
47
3AHkpUF4zgvxVxRPKNrTQyo4NrZ1PH8x5Z
48
3CafimPzKw8ZhXQyQjojD2GDNpwsaQb12J
49
3DTLocTRA6s4LyZGnSN5g4aRfLd8FVaxHh
50
3Ea4umPPeQGELifMTXWmkJAZCzijBuYtVm
51
3EaD7SfNXda1LujuB1fyi8mzuA1qmrsUAq
52
3EaGnTmpjGYRSV2KAkrgP6zg2uhPHAw15o
53
3EaKhQrXE2oZ6b74H7ML2SipNU7cdXhqDz
54
3EaPVCEnRRWZ96qJR8p6JgvgeTmGshvZRy
17
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 18 of 52
55
3EbyqWHMMzE96mMmB6bASnXsaGinwq7now
56
3EciaU3UgTycJvmD2KC4YG4NBoh6fqpZFU
57
3EcQ7XQXQiSS27LgV3hrvsXFntN7GxAxzf
58
3EdXMhAWLKg7PJfLbEKRCMm8Ldm6dsZDzT
59
3EeAr4pt2n9wjeFWY5XXTK1AGcmfTLG2hB
60
3Eein3xzdKxrvKQQJp5Y5H8cbqrhoEKW1N
61
3EekremuSe1bnR43w9nZMG2W7YMkbvgPEa
62
3EemNUbRZoov3jp38BZuAJhSXxnSKQRN9F
63
3EeNxvKupEyozjPEvoccaZBQN2TVTgndgP
64
3EeqkFMzUEPMpB4PZeDe1yHBmLVSiQ6QdX
65
3EeyeaD1YXwrkQGeYgo7QsoJi9tL9CZrxw
66
3EfH1Jk9JBqu6cHqXWUysRiM16HS5bjeK6
67
3EfKyF6eCRVTmvoMXPk8jUgDWfMXXAhhVq
68
3EfUV43ULkkxsezDDbfnh9acBWhCNXQw3p
69
3EfYuiuGvoU6quCSD7RNHBQAngqkfjtu75
70
3EfzSMeN4ds6HXTWP4FZeVZynJTSvvtUgN
71
3EgLDToL4NS51KC7LzY8rw6CsLeaoUVzzz
72
3Egn1PtQuctJViaK5E9gn2BYUZ9vkoyhQY
73
3Egrrh9KgqYYnwoTic2mGrNNqUg7H2xMzt
74
3EguPmkenPJa5ezKgRi41nnnz7JwUvexfy
75
3EWxNDQg52QH7ZXrAfxU22T5XyKCtxUG8Q
76
3EX4bu9vjudVXnFEXJq7pRW7qboPLPcCpU
77
3EX9MLM6pTK6nvajFj4woTx2nT7NXBXrLZ
18
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 19 of 52
78
3EXBCqAR9jW2XJsGK6pAifLhZrg76vDJxF
79
3EXUxdgs5JjmBTvhpCCtyYXveHXW9Ykxmc
80
3EXzujBDN5cVDeRgysMpQjyK8AZ3eZ7m5L
81
3EY8Ln5c51jwY4x7pKroCETEAK6Ch4EDVu
82
3EYc9agtyf5xjdX6gjXNXQVvxUb3UNtTzc
83
3EYwWQxei7iFczcr99LcJAa5pFtFdyQrYX
84
3EZ6VeppfgZc3bGuefA7V5g17i9BnnNVWD
85
3EZetpgN7K5jow7sv9dKQZ2tL6JfNJU4Hy
86
3EZf21ULWjqpLDtzJU1qbfqxgHqaPDpdUD
87
3EZfMVxWBNBUm23HUvvaQXcET3WbkR34oS
88
3EZG4CNSAiDchj5mU5NehxtqVZgJqj3tuN
89
3EZQYLt6XAaWgwqm6PUHAKPGcfNtt3oY6T
90
3EZvc5LA6WjchP7VWY3BohXZ6u73xo3WcE
91
3EZx1DuWqwuRhErsoZJva2ibp8FUuYjBvC
92
3Fq8LkKoJU61MVqL7HJiPR3ecEpxEmqKkU
93
3FqsDefk77P9jQKbnM9qyQiyF13JFYcHTR
94
3FqsDefk77P9jQKbnM9qyQiyF13JFYcHTR
95
3FqV49yKKscsMV3JLmEX6NBm92bdZB83SZ
96
3FqV49yKKscsMV3JLmEX6NBm92bdZB83SZ
97
3Fr2ejXvkk7ccWx4of2TTBkkN4Z8PhmBkW
98
3Fr2ejXvkk7ccWx4of2TTBkkN4Z8PhmBkW
99
3Fr4DFkumQffMD9crpSxSP4oQ2dQRA75Ev
100
3Fr4DFkumQffMD9crpSxSP4oQ2dQRA75Ev
19
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 20 of 52
101
3Fr9hEMfYCnRoNyd9wEBJPMVgSEgVRxFXT
102
3FraSMiSHqntVAxiAiaPaD2z2K1YMvmSu9
103
3Freatgh7mpUhSjvrzUvDR4kR23ERYu3Gz
104
3FrfgNJ6cMoLt4DvSokLRWJYhs3iR58uG6
105
3FrGKydHtTg1mgrwzaBdCF2TLq6dne7sQW
106
3FrgLnW4DQWJQXkaHQm1rvH4GFk7MPpRzy
107
3Frh4A8Tecb1YFsf9T64TCvE6XCqv17Mse
108
3FricPpCwRFkL7zvYBKNEYMGUQp5F7Qj47
109
3FrP22X7MGdQZX66FHDPsrMvGoxFzFxxSD
110
3FrPk5dAyqSpvs1bM43hRFHwHVmnosHw3B
111
3FrRV3hZKuBJmd9oEHuwPbq4Dq1f49yzus
112
3FrS1Vm2Vha1JrMTrGiyCxpwjvEx27cfS8
113
3FrSvZWjvDSGrRDPG6fdwEEEsUkrY65ZU7
114
3FrTayH9wkCnNkTTkfuqx7SVQQzzCQd5Cp
115
3FrUtZ3dXoGNDWejDbXanYEfZR56JyiLsT
116
3FrVsAxKhtau1kcjVY8iXQNo2i1uZD6orS
117
3FrZphLBUTm9aTiXhnZTA3piVJ4oTxjpBU
118
3FtDtZdVMY53Jjk8fCPxydXb633jFdj3wo
119
3FtHfUNd2zgSY8FNW4Aq2f88wwSYiyVacg
120
3Ftpn5gXf79Zurdf7PYGfQZiipgVqEiUkg
121
3FvrNAv5KaEWVA7o8JJKFqeCfCP28JqRDt
122
3FvV3xyheg6BWAjX8Yy6dcENRfmhMnAZ6a
123
3Fw3NTwtmk8zQuwg6s2FPniXWPKirfqAgP
20
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 21 of 52
124
3FWSkG5NmyXF3rqMav7piXiJUDYzKpgFRT
125
3JaDQWNPyysYRcNNQxgkwSUpApXvn3XkBW
126
3La8eKaybxVeBLDxGNSyydVRoX9ZxjrDCW
127
3LhP8JYJ77cj2eVXBasY92Z6omTyRbUdbh
128
3Ngo99WAQieMEJGf5WJz2ycH1reFkjd6yg
129
3QGyLXfEdN1iPt21toAf4qhM4zQ8zsDMMy
130
3Qms9Dk4ViL2LNfup8J5fYLXYCWsXj43Qa
42.
Notably,
the al-Qassam Brigades’ Websites
listed
the email address
[email protected] as the point of contact. On or about October 24, 2019, an HSI undercover
agent (UCA) e-mailed [email protected] to ask if his/her donation would be used to “fight the
occupation.”
43.
Later that same date, the UCA received an e-mail from [email protected] which
stated that donations would “be used to fight the occupation.” The e-mail also asked the UCA to
clarify the amount he/she intended to send so that “we can tell you the proper way to send.”
44.
On or about October 25, 2019, the UCA sent an e-mail to [email protected] and
asked the sender to “describe how my money will be used.” The UCA further explained that
he/she intended to donate $1,100.
45.
On or about October 27, 2019, the UCA received an e-mail from [email protected]
which stated that “your donation will make difference as no jihad will be committed without
money for buying weapons and training mujahideen. Moreover, the doors of jihad are many: by
word, by money, by fighting, etc.” Furthermore, the e-mail indicated that donations could be sent
via MoneyGram or Western Union.
III.
INFRASTRUCTURE OF THE AL-QASSAM BRIGADES’ WEBSITES
21
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 22 of 52
46.
During the course of the investigation, law enforcement discovered five accounts
held at Financial Institution 1, Defendant Properties 181 through 185, which were linked to the
al-Qassam Brigades’ Websites and supporting infrastructure. As detailed below, these accounts
either attempted to fund the server companies hosting the al-Qassam Brigades Websites or are
linked to the email accounts underlying the al-Qassam Brigades’ Websites.
Defendant
Property
#
181
Account Ending
Email Address
40816
Hamas Email 1
182
17365
Hamas Email 1
Hamas Email 2
183
01709
Hamas Email 2
Hamas Email 3
184
08539
Hamas Email 4
185
52104
Hamas Email 4
47.
These Defendant Properties were utilized to support, maintain, and finance the
fundraising campaign, as follows:
a.
On or about June 22, 2014, Defendant Property 181 attempted to send two
payments to the website hosting companies for services provided for the al-Qassam
Brigades’ Websites.
b.
On or about October 14, 2018, Defendant Property 182 was registered
with Financial Institution 1 using Hamas Email 1 and Hamas Email 2. These two email
addresses are directly linked to the al-Qassam Brigades’ Websites. On or about December
22
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 23 of 52
24, 2018, Defendant Property 182 attempted to pay an outstanding website hosting
service invoice relative to the al-Qassam Brigades’ Websites.
c.
On or about March 24, 2014, Defendant Property 183 was registered with
Financial Institution 1 with Hamas Email 2. On or about June 22, 2014 and June 25, 2014,
Defendant Property 183 was used in an attempt to pay for website hosting services
relative to the al-Qassam Brigades’ Websites.
d.
On or about December 5, 2018, Defendant Property 184 was registered
with Financial Institution 1 with Hamas Email 4. On or about December 5, 2018 and May
17, 2019, Defendant Property 184 attempted to make two payments to a web design
company.
e.
On or about May 17, 2019, Defendant Property 185 was registered with
Financial Institution 1 with Hamas Email 4.
IV.
ACCOUNTS OF DONORS TO THE FUNDRAISING CAMPAIGN
48.
Throughout all three stages of the al-Qassam Brigades’ fundraising campaign, the
terrorist organization received donations from cryptocurrency accounts located at a variety of
virtual currency exchanges. As visualized in the chart below, Defendant Properties 131 through
178 sent virtual currency to the al-Qassam Brigades during one or more of the three stages of the
BTC fundraising campaign.
23
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 24 of 52
a. Virtual Currency Exchange 1:
49.
The following donor accounts are located at Virtual Currency Exchange 1:
Defendant
Property
#
131
17cZ7CBhSPHn2gDkfNgrwNmHFDDHX7zC6q
132
1J6665h8Njpva6crm1VSFwW8BToNFxaPxz
133
1GeLggwn8GqtTW6CYFUwerybHkzcNqPqaX
Account Identifier
24
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 25 of 52
134
1Jp1Kwn43qzHWt7bGMdgZS9ZPbTi7rK9AY
135
1MgudcZEMXpB8uXUswuGHgDBTNmUZ8ZkZD
136
1PmAgUZXVvKMRcS37Hu2XVqdkovKG8ZPTk
137
1FUgt1eY69Ric3oaqtNK1xUex7dqph1eEv
138
3HB3GQhNxjfvPYKBYfUZwUVpSatqE8tHBb
139
3QqerQBe5duLc9YwqvKvDPAc3TJZxcfrsw
140
3E8yaNXEKQnnFMvnyyrwxaM9DaqNxHpFzP
141
3FeZrRq9nisxeR4RxBdj4DnhJSsABtGBAC
142
119Yw1qsUihJmBu68gcqgN36CrGy92d4aNX
143
32sVYnjTbnULtPKT8wuSNc7mzdwyuDDuAr
50.
Defendant Properties 131 through 140 were registered at Virtual Currency
Exchange 1, under one account, using the same email address. During the approximate period of
April 3, 2019 to May 6, 2019, this account at Virtual Currency Exchange 1 containing Defendant
Properties 131 through 140 sent approximately 0.0035672 BTC via four transactions to
Defendant Properties 34, 38, 39, and 80, all of which, as noted above, were generated by the alQassam Brigades during stage three.
51.
During the approximate period of May 7, 2019 to June 23, 2019, Defendant
Property 141, another account at Virtual Currency Exchange 1, sent approximately 0.01641437
BTC via six transactions to Defendant Properties 52, 65, 55, 90, 63, and 89, which as noted above
were generated by the al-Qassam Brigades during stage three. This funding of the al-Qassam
Brigades, was the Defendant Property 141’s only activity.
52.
Defendant Properties 142 and 143 were registered at Virtual Currency Exchange
1, under one account, using the same email address. On or about March 24, 2019, an account at
25
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 26 of 52
Virtual Currency Exchange 1 holding Defendant Properties 142 and 143 sent approximately
0.00182397 BTC to Defendant Property 18, which as noted above was generated by the alQassam Brigades during stage three.
b. Virtual Currency Exchange 2:
53.
The following donor accounts are located at Virtual Currency Exchange 2:
Defendant
Property
#
144
13gGNrqWGPN5XxYNnceWEgGykuHuaFhPFM
145
1LuGcrfVyQ8KK1QuQysZcgoRtg7nuU55DH
146
User ID: 35764207
147
1DjYVV19zAuJPcXjn44is2CsAn4sW4it5W
148
15WrJ9vkvw46HGaD9PKpDLkGD6MCX8CEVR
149
14sXBGZZzeunJuyyA1fJY4tKyC5RM7WYTP
150
1LGcSmCwR2eMurxgwLeJtV9iRoLHCVNv3G
151
1Fyyfqjo4pvxwv6yqW5FrzrNspsYrX6ErX
152
User ID: 20920319
153
1P49duqmF5PwRSEpmL13F9QS8y3jVe4zjW
154
1BU8uxGuoFeATAey8XG91Q6Ux23tTTeYyx
155
1DPuLoyzjjTsbGFNcWFu7eK52uYg1qFHtr
157
User ID: 22237397
158
1XD6XifgGCsvcGBUzXqpNNnvC5j3y8gey
159
133sCL2aCviV8N1TLngFGco7CDhHDmwChR
160
1A55bZqCNtFgASJHG4FxTNiAsU3jTt7DVo
Account Identifier
26
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 27 of 52
161
54.
1B7etAU8bG848QNXJjpe9XH9a1WrcWFm2Q
On or about February 1, 2019, Defendant Property 144, an account at Virtual
Currency Exchange 2, sent approximately 0.0295 BTC to Defendant Property 1, which as noted
above was the account registered to “alqassam brigades” at Virtual Currency Exchange 1 that was
used during stage one.
55.
On or about January 31, 2019, Defendant Property 145, an account at Virtual
Currency Exchange 2, sent approximately 0.1428639 BTC to Defendant Property 1.
56.
On or about February 1, 2019, Defendant Property 146, an account at Virtual
Currency Exchange 2, sent approximately 0.13747974 BTC to Defendant Property 1.
57.
On or about January 31, 2019, Defendant Property 147, an account at Virtual
Currency Exchange 2, sent approximately 0.03130579 BTC to Defendant Property 1.
58.
On or about January 1, 2019, Defendant Property 148, an account at Virtual
Currency Exchange 2, sent approximately 0.01112477 BTC to Defendant Property 1.
Additionally, Defendant Property 148 sent approximately 0.00765096 via two transactions to
Defendant Property 4, which as noted above was the BTC address used by al-Qassam Brigades
during stage two.
59.
On or about February 1, 2019, Defendant Property 149, an account at Virtual
Currency Exchange 2, sent approximately 0.01058924 BTC to Defendant Property 1.
60.
On or about April 4, 2019, Defendant Property 150, an account at Virtual
Currency Exchange 2, sent approximately 0.42139 BTC to Defendant Property 32, which as
noted above was generated by the al-Qassam Brigades’ Websites during stage three.
61.
On or about April 23, 2019, Defendant Property 151, an account at Virtual
Currency Exchange 2, sent approximately 0.473 BTC to Defendant Property 150. Network logs
27
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 28 of 52
from Virtual Currency Exchange 2 revealed that Defendant Property 150 and Defendant
Property 151 were logged into using the same devices from identical IP addresses on at least three
occasions, April 23, April 26, and May 22, 2019. The overlap of logins at the same period of the
BTC transfer indicates common control and related involvement in this scheme.
62.
On or about February 3, 2019, Defendant Property 152, an account at Virtual
Currency Exchange 2, sent approximately 0.01542738 BTC to Defendant Property 4.
63.
On or about February 4, 2019, Defendant Property 153, an account at Virtual
Currency Exchange 2, sent approximately 0.1338358 BTC via two transactions to Defendant
Property 4.
64.
On or about February 28, 2019, Defendant Property 154, an account at Virtual
Currency Exchange 2, sent approximately 0.01604317 BTC to Defendant Property 4.
65.
On or about February 5, 2019, Defendant Property 155, an account at Virtual
Currency Exchange 2, sent approximately 0.03448398 BTC to Defendant Property 4. Notably,
the owner of Defendant Property 155 did not provide identifying information upon opening the
account.
66.
On or about March 13, 2019, Defendant Property 157, an account at Virtual
Currency Exchange 2, conducted its only transaction by sending approximately 0.00988427 BTC
to a BTC address starting with 17oT. Approximately thirty-five minutes later, BTC address 17oT
conducted its only transaction, sending approximately 0.00983953 BTC to Defendant Property
4.
67.
On or about March 24, 2019, Defendant Property 158, an account at Virtual
Currency Exchange 2, sent approximately 0.0059799 BTC to a BTC address starting with 1Ewb.
Less than an hour later, BTC address 1Ewb sent approximately 0.00983953 BTC to Defendant
28
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 29 of 52
Property 14, which, as noted above was generated by the al-Qassam Brigades’ Websites during
stage three.
68.
On or about February 5, 2019, Defendant Property 159, at account at Virtual
Currency Exchange 2, conducted its only transaction by sending approximately 0.00932416 BTC
to Target Property 51, which, as noted above was generated by the al-Qassam Brigades’ Websites
during stage three.
69.
On or about May 26 and 28, 2019, Defendant Property 160, an account at Virtual
Currency Exchange 2, sent approximately 0.0058 BTC and 0.00580817 BTC, respectively, to
Defendant Property 84, an address also generated during stage three.
70.
On or about April 1, 2019, Defendant Property 161, an account at Virtual
Currency Exchange 2, conducted its only transaction by sending approximately 0.03675106 BTC
to a BTC address starting with bc1q. Approximately forty minutes later, BTC address bc1q sent
approximately 0.03743901 BTC to Defendant Property 29, an address generated by the alQassam Brigades’ Websites during stage three.
c. Virtual Currency Exchange 3:
71.
Defendant
Property
#
156
72.
The following donor account is located at Virtual Currency Exchange 3:
Account Identifier
34vKeiCwwu5guBZhr4J8RbnKTus8q1j7Sa
On or about March 11, 2018, Defendant Property 156, an account created with
the same phone number and email address as Defendant Property 155, a donor account at Virtual
Currency 2, was created at Virtual Currency Exchange 3. As stated above, the owner of Defendant
Property 155 did not, and was not required to, provide identifying information to Virtual Currency
29
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 30 of 52
Exchange 2. This was not the case, however, with Virtual Currency 3. Rather, upon opening the
account, the owner had to provide Virtual Currency Exchange 3 with personally identifying
information, to include a name and photo ID. Between March 29, 2018 and May 5, 2018,
Defendant Property 156 sent approximately 0.28121121 BTC to Defendant Property 155. By
purchasing BTC at Virtual Currency Exchange 3 and then sending it the BTC to Defendant
Property 155, which did not require personally identifying information to create, the
accountholder could layer and obfuscate payments to the al-Qassam Brigades.
d. Virtual Currency Exchange 4:
73.
The following donor accounts are located at Virtual Currency Exchange 4:
Defendant
Property
#
162
3A2KA243cB17yFFWEcWqffTi3c9CAvq8Dh
163
3JXrtFWn7kaoz75bPqD23kPpMtKZiK3j2w
74.
Account Identifier
On or about June 17, 2019, at account at Virtual Currency Exchange 4 controlling
Defendant Properties 162 and 163 sent approximately 0.007802 BTC to a BTC address starting
with 1GBm. Two days later, BTC address 1GBm conducted its only two transactions by sending
a total of approximately 0.00760121 BTC to Defendant Properties 61 and 62, which, as noted
above were generated by the al-Qassam Brigades’ Websites during stage three.
e. Virtual Currency Exchange 5:
75.
Defendant
Property
#
164
The following donor account is located at Virtual Currency Exchange 5:
Account Identifier
35Yn5sRoasPArcXhN3Uz2HANn34rYg7ihG
30
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 31 of 52
76.
On or about May 12, 2019, Defendant Property 164, an account at Virtual
Currency Exchange 5, sent approximately 0.0132432 BTC to a BTC address starting with 35Yn.
Approximately ten minutes later, BTC address 35Yn sent approximately 0.00711878 BTC to
Defendant Property 83, which, was generated during stage three by the al-Qassam Brigades’
Websites, and approximately 0.00599242 BTC to a BTC address starting with 34rV. On or about
June 4, 2019, BTC address 34rV sent approximately 0.00505708 BTC to Defendant Property 57,
which was also generated during stage three.
f. Virtual Currency Exchange 6:
77.
The following donor account is located at Virtual Currency Exchange 6:
Defendant
Property
#
165
78.
Account Identifier
31mT7hQ7V6B58hfNVJchZTXP7gANpZjUjK
On or about March 25, 2019, Defendant Property 165, an account at Virtual
Currency Exchange 6, sent approximately 0.54374 BTC to Defendant Property 21, which, as
noted above was generated by the al-Qassam Brigades’ Websites during stage three.
g. Virtual Currency Exchange 7:
79.
Defendant
Property
#
166
80.
The following donor account is located at Virtual Currency Exchange 7:
Account Identifier
Account at Virtual Currency 7 identified by email
During the approximate period of July 11, 2019 to January 17, 2020, Defendant
Property 166, an account at Virtual Currency Exchange 7, sent approximately 0.02075 BTC via
nine transactions to Defendant Properties 70, 72, 95, 97, 117, 120, and 121, all of which were
generated by the al-Qassam Brigades’ Websites during stage three.
31
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 32 of 52
h. Virtual Currency Exchange 8:
81.
The following donor accounts are located at Virtual Currency Exchange 8:
Defendant
Property
#
167
3AwD6c5H2Hp6v73Md7Aon5n6HJU5YoBpDz
176
373k2ZQFXVsCtqdFyzRj7zmtsz1aP9dWoZ
82.
Account Identifier
On or about January 25, 2019, Defendant Property 167, an account at Virtual
Currency Exchange 8, sent approximately 0.02776332 BTC to a BTC address starting with 1KLY.
On or about February 1, 2019, BTC address 1KLY sent approximately 0.00287911 BTC to
Defendant Property 1, which as noted above, was the address used by the al-Qassam Brigades in
stage one of the fundraising scheme.
83.
On or about January 31, 2019, Defendant Property 176, an account at Virtual
Currency Exchange 8, sent a total of approximately 0.01006699 BTC to a BTC address starting
with 17Wq. Less than an hour later, BTC address 17Wq conducted its only transaction, sending
approximately 0.00740805 BTC to a BTC address starting with 1DLf. On or about January 31,
2019, BTC address 1DLf then transferred approximately 0.0028948 BTC to Target Property 1.
i.
84.
Virtual Currency Exchange 9:
The following donor accounts are located at Virtual Currency Exchange 9:
Defendant
Property
#
168
Account number: 11398678
169
1GgELQKEcqn572mvHKtzPBrjZ9L3bpKiLi
170
Account number: 11436806
Account Identifier
32
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 33 of 52
171
1Eg7YSoJiqUV7ERsDXiGKExtyJkkXR7NHr
85.
On or about February 2, 2019, Defendant Property 168, an account at Virtual
Currency Exchange 9, sent approximately $806.98 worth of virtual currency to Defendant
Property 1, which as noted above, was the primary al-Qassam Brigades’ account for stage one
fundraising.
86.
On or about February 7, 2018, Defendant Property 169, an account at Virtual
Currency Exchange 9, sent approximately 0.24577091 BTC to a BTC address starting with 1L8a.
On or about February 1, 2019, BTC address 1L8a sent approximately 0.02905279 BTC to
Defendant Property 1. Later that same day, BTC address 1L8a sent approximately 0.0286916
BTC to Defendant Property 4, the al-Qassam Brigades’ fundraising account for stage two.
87.
On or about February 12, 2019, Defendant Property 170, an account at Virtual
Currency Exchange 9, attempted to send approximately $534.83 worth of virtual currency to
Defendant Property 4. This transaction failed because it was not conducted using BTC, the only
currency accepted by the al-Qassam Brigades in stage two. The donor then converted virtual
currency within Defendant Property 170 into BTC and tried once more to send the BTC to
Defendant Property 4. The potential donor was once again unsuccessful, as Virtual Currency
Exchange 9 blocked the transaction as part of its terrorist detection efforts.
88.
On or about March 24, 2019, Defendant Property 171, an account at Virtual
Currency Exchange 9, sent approximately 0.00196498 BTC to Defendant Property 16, which as
noted above was generated by the al-Qassam Brigades’ Websites during stage three.
j.
89.
Virtual Currency Exchange 10:
The following donor accounts are located at Virtual Currency Exchange 10:
33
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 34 of 52
Defendant
Property
#
172
Account number: 5806702
173
Account number: 6971221
174
3QRGcu41GN8cGYkp49xrv8VB7prLkokzLk
90.
Account Identifier
On or about February 1, 2019, Defendant Property 172, an account at Virtual
Currency Exchange 10, sent approximately 0.00012 BTC to Defendant Property 1.
91.
On or about February 4, 2019, Defendant Property 173, an account at Virtual
Currency Exchange 10, sent approximately $5.87 worth of virtual currency to Defendant
Property 1.
92.
During the approximate period of April 12, 2019 to May 25, 2019, Defendant
Property 174, an account at Virtual Currency Exchange 10, sent a total of approximately 0.004785
BTC via six transactions to Defendant Properties 39 and 91, which as noted above were generated
by the al-Qassam Brigades’ Websites during stage three.
k. Virtual Currency Exchange 11:
93.
Defendant
Property
#
175
94.
The following donor account is located at Virtual Currency Exchange 11:
Account Identifier
1Mduu84x4Wm7FWm5vgaNvtk3APhEw1661t
On or about February 2, 2019, Defendant Property 175, an account at Virtual
Currency Exchange 11, sent a total of approximately 0.15659642 BTC via two transactions within
15 minutes to a BTC address starting with 182r. Within an hour, BTC address 182r sent
approximately 0.086496 BTC to Defendant Property 4 and approximately 0.0028812 BTC to
34
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 35 of 52
Defendant Property 12, accounts both generated by the al-Qassam Brigades during the
fundraising campaign.
V.
UNLICENSED MONEY SERVICE BUSINESS LINKED TO THE AL-QASSAM
BRIGADES’ FUNDRAISING SCHEME
95.
Once the al-Qassam Brigades amassed BTC from the above donor accounts in this
fundraising campaign, the organization typically converted the virtual currency to traditional fiat
currency or exchanged it for something of value, such as a gift card, in order to spend the BTC.
96.
At least one unlicensed money service business (“MSB”) using Defendant
Property 179 at Virtual Currency Exchange 12, served this purpose for the al-Qassam Brigades,
and was linked to the terrorist fundraising scheme, as detailed below. Defendant Property 179,
was also connected to another account at Virtual Currency Exchange 12, Defendant Property
180, which operated an intertwined unlicensed MSB. These two Defendant Properties, together
conspired to launder monetary instruments and violate MSB registration requirements.
Defendant
Property
#
179
User ID
180
2319627
97.
931770
Using Blockchain analysis, law enforcement traced at least one “cash-out”
transaction from the al-Qassam Brigades to Defendant Property 179. Specifically, on or about
February 14, 2019, approximately 0.066 BTC was sent, collectively, 1 from Defendant
Property 4, Defendant Property 8, and Defendant Property 9 to a BTC address starting with
1
BTC transactions can include multiple inputs and outputs. In this example, BTC stored in three
separate BTC addresses were collectively sent to one BTC address.
35
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 36 of 52
1L7N. Within a few hours, BTC address 1L7N sent approximately 0.069 BTC to Defendant
Property 179, an account at Virtual Currency Exchange 12.
98.
On or about October 16, 2017, Defendant Property 179 was registered to a
Turkish national, Mehmet Akti (“Akti”) who later told Virtual Currency Exchange 12 that he used
the account for the “purchase and sale of cryptocurrency, as well as the provision of services
related to this activity.” Akti was not registered with the Financial Crimes Enforcement Network
(“FinCEN”) as an MSB at the time of this statement.
99.
In spite of this lack of registration, Virtual Currency Exchange 12 records show that
Akti operated a prolific virtual currency MSB from Defendant Property 179. Specifically,
between October 2017 and March 2019, Defendant Property 179 was in receipt of approximately
2,328 BTC, 2,296 ETH, and U.S. dollar wires totaling $82.8 million. All of the U.S. dollar wires
originated from one bank account. Due to the nature of correspondent bank transactions, these
international wires transited from outside the United States into the United States and then back
out to the intended destination. Akti then used these U.S. dollar wires to acquire additional virtual
currencies, primarily BTC and ETH.
100.
During the same period, Akti withdrew large amounts of virtual currency from
Defendant Property 179, to include approximately 11,228 BTC, 7,063 ETH, 957,109 XRP, and
118,008 EOS. Notably, these withdrawals were sent to over 250 unique cryptocurrency wallet
addresses and involved transactions totaling over $90 million. Akti used Defendant Property
179 to service hundreds of customers for whom he transmitted these funds, as an unlicensed MSB.
101.
Virtual Currency Exchange 12 records further show that at least six of Akti’s
customers lived in the United States at the time of the transactions with Defendant Property 179,
or relied on an account at a U.S.-based virtual currency exchange to use Akti’s services. In total,
36
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 37 of 52
Akti sent these U.S. nexus customers, approximately 373 BTC from Defendant Property 179, as
part of his unlicensed money transmitting business.
102.
On or about February 25, 2019, Virtual Currency Exchange 12 requested “Know-
Your-Customer” (“KYC”) information from Akti. On or about March 8, 2019, Akti provided the
requested KYC information. Three days later, Akti liquidated most of Defendant Property 179
by transferring almost all of his cryptocurrency to other wallet addresses.
103.
Nearly half of Akti’s cryptocurrency was redeposited into a second account at
Virtual Currency Exchange 12, Defendant Property 180. In total, approximately 42.2 BTC,
2,465 ETH, 123,500 XRP, and 70,055 EOS was transferred through a network of intermediary
wallet addresses from Defendant Property 179 to Defendant Property 180.
104.
Records show that Defendant Property 180 was opened by, and registered to
Husamettin Karataş (“Karataş”), on March 20, 2019, nearly the same time as Defendant Property
179’s liquidation.
105.
Karataş admitted in a signed affidavit that he operated a cryptocurrency exchange
from Defendant Property 180. Financial records and Blockchain analysis confirm this fact.
These records and analysis also reveal the Defendant Property 180 relied on the U.S. financial
system to operate this exchange business, without the requisite FinCEN registration.
106.
Specifically, in addition to the cryptocurrency received from Akti, Defendant
Property 180 received cryptocurrency and U.S. dollar wires valued at approximately $2.1 million
dollars between April 2019 and July 2019. During this same time period, Defendant Property
180 withdrew cryptocurrency valued at approximately $2.3 million dollars, transferring this
cryptocurrency to approximately 17 unique wallet addresses.
37
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 38 of 52
107.
One of Karataş’s customers transacted within a U.S.-based virtual currency
exchange. In total, this customer received approximately $19,290 USD from Defendant Property
180. Notably, this same customer and account had previously transacted with Akti at Defendant
Property 179 in the amount of 2 BTC.
108.
Defendant Property 179 and Defendant Property 180 shared a number of other
customers. This included a customer that sent U.S. dollar wires, totaling approximately $82.8
million dollars and $500,000 respectively, to Defendant Property 179 and Defendant Property
180.
109.
Defendant Property 179 and Defendant Property 180 also shared common IP
addresses and log in identifiers, further linking the accounts and their owners: Defendant
Property 179 and Defendant Property 180 were both logged into within minutes of each other
using a mobile device utilizing the same IP address, operating system version, and internet browser
version between May 2019 and August 2019. One of these IP addresses, 78.180.183.249, was the
primary IP address utilized to access both accounts.
110.
COUNT ONE – FORFEITURE
(18 U.S.C. § 981(A)(1)(G)(I))
The United States incorporates by reference the allegations set forth in Paragraphs
1 to 107 above as if fully set forth herein.
111.
Hamas is a designated foreign terrorist organization.
112.
The above described scheme involves the fundraising campaign of this designated
foreign terrorist organization, and its military wing, the al-Qassam Brigades, to finance terrorism
via BTC solicitations involving the Defendant Properties.
113.
The Defendant Properties are subject to forfeiture to the United States, pursuant to
18 U.S.C. § 981(a)(1)(G)(i), as assets of a foreign terrorist organization engaged in planning or
38
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 39 of 52
perpetrating any federal crime of terrorism (as defined in section 2332b(g)(5)) against the United
States, citizens or residents of the United States, or their property, and as assets affording any
person a source of influence over any such entity or organization.
COUNT TWO – FORFEITURE
(18 U.S.C. § 981(a)(1)(A))
114.
The United States incorporates by reference the allegations set forth in Paragraphs
93 to 107 above as if fully set forth herein.
115.
The Defendant Properties were involved in a conspiracy to launder and the
laundering of monetary instruments intended to promote the carrying on of a specified unlawful
activity, that is, providing material support or resources to a designated foreign terrorist
organization, namely Hamas, in violation of 18 U.S.C § 2339B.
116.
Defendant Property 179 and Defendant Property 180 were also involved in a
conspiracy to launder and the laundering of monetary instruments intended to promote the carrying
on of a specified unlawful activity, that is, operating an unlicensed money transmitting business,
violations of 18 U.S.C. § 1960.
117.
As such, the Defendant Properties are subject to forfeiture, pursuant to Title 18,
United States Code, Section 981(a)(1)(A), as property involved in a transaction or attempted
transaction in violation of 18 U.S.C. § 1956, or property traceable to such property.
PRAYER FOR RELIEF
WHEREFORE, the United States of America prays that notice issue on the Defendant
Properties as described above; that due notice be given to all parties to appear and show cause why
the forfeiture should not be decreed; that a warrant of arrest in rem issue according to law; that
judgment be entered declaring that the Defendant Properties be forfeited for disposition
39
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 40 of 52
according to law; and that the United States of America be granted such other relief as this Court
may deem just and proper, together with the costs and disbursements of this action.
Dated: August 13, 2020
Respectfully submitted,
MICHAEL R. SHERWIN
Acting United States Attorney
N.Y. Bar No. 4444188
By:
__/s/_Jessi Camille Brooks
Jessi Camille Brooks, C.A. Bar No 983055
Zia M. Faruqui, D.C. Bar No. 494990
Assistant United States Attorneys
555 4th Street, N.W.
Washington, D.C. 20001
(202) 252-7745
[email protected]
Danielle Rosborough D.C. Bar No. 1016234
Trial Attorney
National Security Division
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20004
Office: (202) 514-0849 (main line)
40
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 41 of 52
VERIFICATION
I, Christopher Janczewski, a Special Agent with the Internal Revenue Service-Criminal
Investigations, declare under penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing
Verified Complaint for Forfeiture In Rem is based upon reports and information known to me
and/or furnished to me by other law enforcement representatives and that everything represented
herein is true and correct.
Executed on this 13th day of August, 2020.
/s/ Chris Janczewski
_
Special Agent Chris Janczewski, IRS-CI
I, William Capra, a Special Agent with the Homeland Security Investigation, declare under
penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing Verified Complaint for
Forfeiture In Rem is based upon reports and information known to me and/or furnished to me by
other law enforcement representatives and that everything represented herein is true and correct.
Executed on this 13th day of August, 2020.
/s/ William Capra
Special Agent William Capra,
Homeland Security Investigation
_
41
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 42 of 52
ATTACHMENT A:
VIRTUAL CURRENCY EXCHANGE ACCOUNTS
Accounts at Virtual Currency Exchange 1:
Defendant
Property
#
1
3PajPWymUexhewHPczmLQ8CMYatKAGNj3y
2
3LrjAKNfnyX2BGmor6ZNxvZutM1Q3KEejZ
3
1HrPF5CPqJiWbkroxheU5LcHL7bZNDi76v
131
17cZ7CBhSPHn2gDkfNgrwNmHFDDHX7zC6q
132
1J6665h8Njpva6crm1VSFwW8BToNFxaPxz
133
1GeLggwn8GqtTW6CYFUwerybHkzcNqPqaX
134
1Jp1Kwn43qzHWt7bGMdgZS9ZPbTi7rK9AY
135
1MgudcZEMXpB8uXUswuGHgDBTNmUZ8ZkZD
136
1PmAgUZXVvKMRcS37Hu2XVqdkovKG8ZPTk
137
1FUgt1eY69Ric3oaqtNK1xUex7dqph1eEv
138
3HB3GQhNxjfvPYKBYfUZwUVpSatqE8tHBb
139
3QqerQBe5duLc9YwqvKvDPAc3TJZxcfrsw
140
3E8yaNXEKQnnFMvnyyrwxaM9DaqNxHpFzP
141
3FeZrRq9nisxeR4RxBdj4DnhJSsABtGBAC
142
119Yw1qsUihJmBu68gcqgN36CrGy92d4aNX
143
32sVYnjTbnULtPKT8wuSNc7mzdwyuDDuAr
Account Identifier
42
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 43 of 52
Accounts at Virtual Currency Exchange 2:
Defendant
Property
#
144
13gGNrqWGPN5XxYNnceWEgGykuHuaFhPFM
145
1LuGcrfVyQ8KK1QuQysZcgoRtg7nuU55DH
146
User ID: 35764207
147
1DjYVV19zAuJPcXjn44is2CsAn4sW4it5W
148
15WrJ9vkvw46HGaD9PKpDLkGD6MCX8CEVR
149
14sXBGZZzeunJuyyA1fJY4tKyC5RM7WYTP
150
1LGcSmCwR2eMurxgwLeJtV9iRoLHCVNv3G
151
1Fyyfqjo4pvxwv6yqW5FrzrNspsYrX6ErX
152
User ID: 20920319
153
1P49duqmF5PwRSEpmL13F9QS8y3jVe4zjW
154
1BU8uxGuoFeATAey8XG91Q6Ux23tTTeYyx
155
1DPuLoyzjjTsbGFNcWFu7eK52uYg1qFHtr
157
User ID: 22237397
158
1XD6XifgGCsvcGBUzXqpNNnvC5j3y8gey
159
133sCL2aCviV8N1TLngFGco7CDhHDmwChR
160
1A55bZqCNtFgASJHG4FxTNiAsU3jTt7DVo
161
1B7etAU8bG848QNXJjpe9XH9a1WrcWFm2Q
Account Identifier
43
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 44 of 52
Account at Virtual Currency Exchange 3:
Defendant
Property
#
156
Account Identifier
34vKeiCwwu5guBZhr4J8RbnKTus8q1j7Sa
Accounts at Virtual Currency Exchange 4:
Defendant
Property
#
162
3A2KA243cB17yFFWEcWqffTi3c9CAvq8Dh
163
3JXrtFWn7kaoz75bPqD23kPpMtKZiK3j2w
Account Identifier
Account at Virtual Currency Exchange 5:
Defendant
Property
#
164
Account Identifier
35Yn5sRoasPArcXhN3Uz2HANn34rYg7ihG
Account at Virtual Currency Exchange 6:
Defendant
Property
#
165
Account Identifier
31mT7hQ7V6B58hfNVJchZTXP7gANpZjUjK
Account at Virtual Currency Exchange 7:
Defendant
Property
#
166
Account Identifier
Account at Virtual Currency 7 identified by email address
44
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 45 of 52
Accounts at Virtual Currency Exchange 8:
Defendant
Property
#
167
3AwD6c5H2Hp6v73Md7Aon5n6HJU5YoBpDz
176
373k2ZQFXVsCtqdFyzRj7zmtsz1aP9dWoZ
Account Identifier
Accounts at Virtual Currency Exchange 9:
Defendant
Property
#
168
Account number: 11398678
169
1GgELQKEcqn572mvHKtzPBrjZ9L3bpKiLi
170
Account number: 11436806
171
1Eg7YSoJiqUV7ERsDXiGKExtyJkkXR7NHr
178
1JJrTJgxSNqEPDrRBogD7odjvCwuog9Cqb
Account Identifier
Accounts at Virtual Currency Exchange 10:
Defendant
Property
#
172
Account number: 5806702
173
Account number: 6971221
174
3QRGcu41GN8cGYkp49xrv8VB7prLkokzLk
Account Identifier
45
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 46 of 52
Accounts at Virtual Currency Exchange 11:
Defendant
Property
#
175
1Mduu84x4Wm7FWm5vgaNvtk3APhEw1661t
177
1D9jDMKhss9vtmeRWeBA6tmts52JoQyezk
Account Identifier
Accounts at Virtual Currency Exchange 12:
Defendant
Property
#
179
User ID
180
2319627
931770
VIRTUAL CURRENCY ADDRESSES
Defendant
Property #
4
17QAWGVpFV4gZ25NQug46e5mBho4uDP6MD
5
1KDFQFnFfy9gJgXF18U3vpfeJQAeixPp1K
6
1HQhQfFPesW8znZdsdizHnA8ggvtc6NJ4k
7
1AW9z69zW2Wpg5i2gFs9YzkvZLjzDNx5VG
8
14EwXyqiB3yVLDJ1zVNevvEDpyyhBdnzjk
9
14S3GUHsqSY2am6yCPqEhb72sECUUbnRtE
10
14dRMzjmatz7zkc7iRYaitMvw4YPxXJYHf
11
1JJQceg2YZuCsJxUvAAVwU2YH4wDwxQoy6
12
1EQFWyM1gTus8cnuwHQErnaED3um1py2pF
13
19ncZQTCBfvfW5bsM7v3Pe7t6nzu4GZy4r
Virtual Currency Address
46
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 47 of 52
14
31hnjnw7Xe8e183u2qffHt4qpLFLfergmF
15
31idyYGpkmev8S1Kve8TvHExYdFeDM2saV
16
31iUH4sRXJt9F8MnnpVY1HAxUZ1qZQ4Z7x
17
31iZbakXU1arYMMyiCgceipKjUxCF19N5j
18
31jbxdhDYxkB6ULhsk7VMLsNB3KQgTREUZ
19
31k6eLZLTP1adv7EqZNkbnd8Jm1oHnULuP
20
31mnD8FtBVyHh6CCFsUwiTFHuu6RMTCjcR
21
31mUJqpqH8HLsGaxMdARTgdPHkbWbq2yuQ
22
31n5MTyfWEFFm7pXf7e9Qt2i5Ec8jKA1py
23
31nob3VbXpByQZBuvHdFF1vcwjBoSd1xJF
24
31o5C1u66MjVZMrcJHzHYuQFk9XuDUznqX
25
31osZ4w7nPC2wbezG3fhu7fraUNBeEfdyA
26
31ot27eWxmxbQtVWmpiSyuakJNKqwc4uSZ
27
31otG9J9PWZ5GuUaAFVwuzP5nrAX6sVNh8
28
31p9vft5AqYgt7uPxTXCis97zHE2E8RkTG
29
31pmPV1XpevjEUzPtmr5sDXm8s4YzTyaS2
30
31pWw13YTX5h9EY6T5hjcRDT4bDF6cQMXR
31
31pYNazDxCwnhAyVCNqpELTE66qi4KcEA5
32
31qeJQa6Y6LL74HDBe5ZkuE7GxfMvUAh7t
33
31qk3S4hqj5KfedbVo45nFdvrXQ6TnYtY2
34
31qMgW6GideWcAHTdYf4GN3UEKEzVTP6jb
35
31qv732ydN8kbUyLYbv5QBNDyHRbRqL5wo
36
31rbKDq1pwA1GLHwa82cySVrkTo1R6htMK
47
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 48 of 52
37
31rhvmw3BPW9bYXvV6RJ4ZuwgUP2QbN6Wp
38
31rQoLSQkVa2SQhgRByhrM5e69KaKPntpp
39
31rZQb9DM2Fz5Yqi47UTsZ3FttETRAvbeu
40
31s1NZm8S16JsedBDJcSX815ikhNCkro28
41
31spTrrz7g2nCtf7JPVFrsAwiQi6SGJygU
42
31tKBTcV4bWYLEXzSwByPuJWmEnWkNUXNs
43
32LjBurh7tKVpxmhhEhfPUnKYzV7jxzane
44
33mskKAPj8RVaFcSaCDtWtpCQYNCp4dFLw
45
344Aycb4ZzEZXEF26qgbGrfYjFEqMJbN6F
46
38vt9RRxHJboCyFbTieWT1sFKxbacKeBgg
47
3AHkpUF4zgvxVxRPKNrTQyo4NrZ1PH8x5Z
48
3CafimPzKw8ZhXQyQjojD2GDNpwsaQb12J
49
3DTLocTRA6s4LyZGnSN5g4aRfLd8FVaxHh
50
3Ea4umPPeQGELifMTXWmkJAZCzijBuYtVm
51
3EaD7SfNXda1LujuB1fyi8mzuA1qmrsUAq
52
3EaGnTmpjGYRSV2KAkrgP6zg2uhPHAw15o
53
3EaKhQrXE2oZ6b74H7ML2SipNU7cdXhqDz
54
3EaPVCEnRRWZ96qJR8p6JgvgeTmGshvZRy
55
3EbyqWHMMzE96mMmB6bASnXsaGinwq7now
56
3EciaU3UgTycJvmD2KC4YG4NBoh6fqpZFU
57
3EcQ7XQXQiSS27LgV3hrvsXFntN7GxAxzf
58
3EdXMhAWLKg7PJfLbEKRCMm8Ldm6dsZDzT
59
3EeAr4pt2n9wjeFWY5XXTK1AGcmfTLG2hB
48
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 49 of 52
60
3Eein3xzdKxrvKQQJp5Y5H8cbqrhoEKW1N
61
3EekremuSe1bnR43w9nZMG2W7YMkbvgPEa
62
3EemNUbRZoov3jp38BZuAJhSXxnSKQRN9F
63
3EeNxvKupEyozjPEvoccaZBQN2TVTgndgP
64
3EeqkFMzUEPMpB4PZeDe1yHBmLVSiQ6QdX
65
3EeyeaD1YXwrkQGeYgo7QsoJi9tL9CZrxw
66
3EfH1Jk9JBqu6cHqXWUysRiM16HS5bjeK6
67
3EfKyF6eCRVTmvoMXPk8jUgDWfMXXAhhVq
68
3EfUV43ULkkxsezDDbfnh9acBWhCNXQw3p
69
3EfYuiuGvoU6quCSD7RNHBQAngqkfjtu75
70
3EfzSMeN4ds6HXTWP4FZeVZynJTSvvtUgN
71
3EgLDToL4NS51KC7LzY8rw6CsLeaoUVzzz
72
3Egn1PtQuctJViaK5E9gn2BYUZ9vkoyhQY
73
3Egrrh9KgqYYnwoTic2mGrNNqUg7H2xMzt
74
3EguPmkenPJa5ezKgRi41nnnz7JwUvexfy
75
3EWxNDQg52QH7ZXrAfxU22T5XyKCtxUG8Q
76
3EX4bu9vjudVXnFEXJq7pRW7qboPLPcCpU
77
3EX9MLM6pTK6nvajFj4woTx2nT7NXBXrLZ
78
3EXBCqAR9jW2XJsGK6pAifLhZrg76vDJxF
79
3EXUxdgs5JjmBTvhpCCtyYXveHXW9Ykxmc
80
3EXzujBDN5cVDeRgysMpQjyK8AZ3eZ7m5L
81
3EY8Ln5c51jwY4x7pKroCETEAK6Ch4EDVu
82
3EYc9agtyf5xjdX6gjXNXQVvxUb3UNtTzc
49
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 50 of 52
83
3EYwWQxei7iFczcr99LcJAa5pFtFdyQrYX
84
3EZ6VeppfgZc3bGuefA7V5g17i9BnnNVWD
85
3EZetpgN7K5jow7sv9dKQZ2tL6JfNJU4Hy
86
3EZf21ULWjqpLDtzJU1qbfqxgHqaPDpdUD
87
3EZfMVxWBNBUm23HUvvaQXcET3WbkR34oS
88
3EZG4CNSAiDchj5mU5NehxtqVZgJqj3tuN
89
3EZQYLt6XAaWgwqm6PUHAKPGcfNtt3oY6T
90
3EZvc5LA6WjchP7VWY3BohXZ6u73xo3WcE
91
3EZx1DuWqwuRhErsoZJva2ibp8FUuYjBvC
92
3Fq8LkKoJU61MVqL7HJiPR3ecEpxEmqKkU
93
3FqsDefk77P9jQKbnM9qyQiyF13JFYcHTR
94
3FqsDefk77P9jQKbnM9qyQiyF13JFYcHTR
95
3FqV49yKKscsMV3JLmEX6NBm92bdZB83SZ
96
3FqV49yKKscsMV3JLmEX6NBm92bdZB83SZ
97
3Fr2ejXvkk7ccWx4of2TTBkkN4Z8PhmBkW
98
3Fr2ejXvkk7ccWx4of2TTBkkN4Z8PhmBkW
99
3Fr4DFkumQffMD9crpSxSP4oQ2dQRA75Ev
100
3Fr4DFkumQffMD9crpSxSP4oQ2dQRA75Ev
101
3Fr9hEMfYCnRoNyd9wEBJPMVgSEgVRxFXT
102
3FraSMiSHqntVAxiAiaPaD2z2K1YMvmSu9
103
3Freatgh7mpUhSjvrzUvDR4kR23ERYu3Gz
104
3FrfgNJ6cMoLt4DvSokLRWJYhs3iR58uG6
105
3FrGKydHtTg1mgrwzaBdCF2TLq6dne7sQW
50
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 51 of 52
106
3FrgLnW4DQWJQXkaHQm1rvH4GFk7MPpRzy
107
3Frh4A8Tecb1YFsf9T64TCvE6XCqv17Mse
108
3FricPpCwRFkL7zvYBKNEYMGUQp5F7Qj47
109
3FrP22X7MGdQZX66FHDPsrMvGoxFzFxxSD
110
3FrPk5dAyqSpvs1bM43hRFHwHVmnosHw3B
111
3FrRV3hZKuBJmd9oEHuwPbq4Dq1f49yzus
112
3FrS1Vm2Vha1JrMTrGiyCxpwjvEx27cfS8
113
3FrSvZWjvDSGrRDPG6fdwEEEsUkrY65ZU7
114
3FrTayH9wkCnNkTTkfuqx7SVQQzzCQd5Cp
115
3FrUtZ3dXoGNDWejDbXanYEfZR56JyiLsT
116
3FrVsAxKhtau1kcjVY8iXQNo2i1uZD6orS
117
3FrZphLBUTm9aTiXhnZTA3piVJ4oTxjpBU
118
3FtDtZdVMY53Jjk8fCPxydXb633jFdj3wo
119
3FtHfUNd2zgSY8FNW4Aq2f88wwSYiyVacg
120
3Ftpn5gXf79Zurdf7PYGfQZiipgVqEiUkg
121
3FvrNAv5KaEWVA7o8JJKFqeCfCP28JqRDt
122
3FvV3xyheg6BWAjX8Yy6dcENRfmhMnAZ6a
123
3Fw3NTwtmk8zQuwg6s2FPniXWPKirfqAgP
124
3FWSkG5NmyXF3rqMav7piXiJUDYzKpgFRT
125
3JaDQWNPyysYRcNNQxgkwSUpApXvn3XkBW
126
3La8eKaybxVeBLDxGNSyydVRoX9ZxjrDCW
127
3LhP8JYJ77cj2eVXBasY92Z6omTyRbUdbh
128
3Ngo99WAQieMEJGf5WJz2ycH1reFkjd6yg
51
Case 1:20-cv-02227 Document 1 Filed 08/13/20 Page 52 of 52
129
3QGyLXfEdN1iPt21toAf4qhM4zQ8zsDMMy
130
3Qms9Dk4ViL2LNfup8J5fYLXYCWsXj43Qa
ACCOUNTS AT FINANCIAL INSTITUTION 1
Defendant
Property
#
181
Account Ending
Email Address
40816
Hamas Email 1
182
17365
Hamas Email 1
Hamas Email 2
183
01709
Hamas Email 2
Hamas Email 3
184
08539
Hamas Email 4
185
52104
Hamas Email 4
DOMAIN NAMES
Defendant
Property #
186
Account Ending
187
alqassam.ps
188
qassam.ps
alqassam.net
52
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 1 of 22
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
UNITED STATES OF AMERICA,
Plaintiff,
v.
155 VIRTUAL CURRENCY ASSETS
Defendants.
)
)
)
)
)
)
Civil Action No. 20-cv-2228
)
)
)
)
)
)
UNITED STATES’ VERIFIED COMPLAINT FOR FORFEITURE IN REM
COMES NOW, Plaintiff the United States of America, by and through the Acting United
States Attorney for the District of Columbia, and brings this Verified Complaint for Forfeiture in
Rem against the defendant properties, namely: 155 virtual currency accounts (the “Defendant
Properties”), which are further described in Attachment A. The United States alleges as follows
in accordance with Rule G(2) of the Federal Rules of Civil Procedure, Supplemental Rules for
Admiralty or Maritime Claims and Asset Forfeiture Actions.
NATURE OF ACTION AND THE DEFENDANT IN REM
1.
This in rem forfeiture action arises out of an investigation by the Internal Revenue
Service – Criminal Investigation’s Cyber Crimes Unit (“IRS-CI”), Federal Bureau of Investigation
(“FBI”), and Homeland Security Investigations (“HSI”). Specifically, the United States is
investigating the unlawful use of the cryptocurrency to support and finance terrorism.
2.
The Defendant Properties are subject to seizure and forfeiture pursuant to 18 U.S.C.
§ 981(a)(1)(G)(i), as foreign assets of designated foreign terrorist organizations based in Syria that
are linked to al-Qaeda, including the Al-Nusrah Front (“ANF”) and Hay’at Tahrir al-Sham
(“HTS”), which have engaged in planning and perpetrating federal crimes of terrorism as defined
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 2 of 22
in 18 U.S.C. § 2332b(g)(5), against the United States, citizens or residents of the United States,
and as foreign assets affording any person a source of influence over any such entity or
organization.
JURISDICTION AND VENUE
3.
This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355.
4.
Venue is proper pursuant to 28 U.S.C. § 1355(b)(2).
FACTS GIVING RISE TO FORFEITURE
I.
BACKGROUND
A.
al-Qaeda and Affiliated Foreign Terrorist Organizations
5.
On October 8, 1999, the United States Secretary of State designated al-Qaeda as a
Foreign Terrorist Organization (“FTO”) under Section 219 of the Immigration and Nationality Act
and as a Specially Designated Global Terrorist (“SDGT”) under section 1(b) of Executive Order
13224. The Secretary of State also added the following aliases to the FTO listing: “the Base,” the
Islamic Army, the World Islamic Front for Jihad Against Jews and Crusaders, the Islamic Army
for the Liberation of the Holy Places, the Usama Bin Laden Network, the Usama Bin Laden
Organization, Islamic Salvation Foundation, and The Group for the Preservation of the Holy Sites.
To date, AQ remains a designated FTO.
6.
Al Qaeda’s designation as an FTO and SDGT has been renewed on multiple
occasions since 1999, and al-Qaeda remains a designated FTO and SDGT today.
7.
On October 15, 2004, the Secretary of State designated Jam’at al Tawhid wa’al-
Jihad as an FTO under Section 219 of the Immigration and Nationality Act and as a SDGT under
section 1(b) of Executive Order 13224.
8.
On December 15, 2004, the Deputy Secretary of State added numerous aliases to
the Jam’at al Tawhid wa’al-Jihad FTO designation including the alias al-Qaida in Iraq (“AQI”).
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 3 of 22
9.
On December 11, 2012, the Secretary of State amended the FTO and SDGT
designations of Jam’at al Tawhid wa’al-Jihad to include the following aliases: al-Nusrah Front
(“ANF”), Jabhat al-Nusrah, Jabhet al-Nusra, The Victory Front, and Al-Nusrah Front for the
People of the Levant.
10.
On May 15, 2014, the Secretary of State, in response to the evolving nature of the
relationships between ANF and AQI, amended the FTO and SDGT designations of AQI to remove
all aliases associated with ANF. Separately, the Secretary of State then designated al-Nusrah Front
(ANF), also known as Jabhat al-Nusrah, also known as Jabhet al-Nusra, also known as The Victory
Front, also known as Al-Nusrah Front for the People of the Levant, also known as Al-Nusrah Front
in Lebanon, also known as Support Front for the People of the Levant, and also known as Jabaht
al-Nusra li-Ahl al-Sham min Mujahedi al-Sham fi Sahat al-Jihadb as an FTO under Section 219
of the Immigration and Nationality Act and as a SDGT under section 1(b) of Executive Order
13224.
11.
On October 19, 2016, the Secretary of State amended the FTO and SDGT
designations of ANF to include the following new aliases: Jabhat Fath al Sham, also known as
Jabhat Fath al-Sham, also known as Jabhat Fatah al-Sham, also known as Jabhat Fateh al-Sham,
also known as Fatah al-Sham Front, also known as Fateh Al-Sham Front, also known as Conquest
of the Levant Front, also known as The Front for liberation of al Sham, also known as Front for
the Conquest of Syria/the Levant, also known as Front for the Liberation of the Levant, also known
as Front for the Conquest of Syria.
12.
On May 17, 2018, the Secretary of State amended the FTO and SDGT designations
of ANF to include the following aliases: Hay’at Tahrir al-Sham, also known as Hay’et Tahrir alSham, also known as Hayat Tahrir al-Sham, also known as HTS, also known as Assembly for the
Liberation of Syria, also known as Assembly for Liberation of the Levant, also known as
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 4 of 22
Liberation of al-Sham Commission, also known as Liberation of the Levant Organisation, also
known as Tahrir al-Sham, also known as Tahrir al-Sham Hay’at.
13.
To date, ANF and HTS remain designated FTOs.
B.
Bitcoin
14.
Bitcoin (“BTC”) is a decentralized virtual currency, which is supported by a peer-
to-peer network. All transactions are posted to a public ledger, called the Blockchain (which can
be seen at https://Blockchain.info). Although transactions are visible on the public ledger, each
transaction is only listed by a complex series of numbers that does not identify the individuals
involved in the transaction. This feature makes BTC pseudonymous; however, it is possible to
determine the identity of an individual involved in a BTC transaction through several different
tools that are available to law enforcement. For this reason, many criminal actors who use BTC
to facilitate illicit transactions online (e.g., to buy and sell drugs or other illegal items or services)
look for ways to make their transactions even more anonymous.
15.
A BTC address is a unique token; however, BTC is designed such that one person
may easily operate many BTC accounts. Like an e-mail address, a user can send and receive BTC
with others by sending BTC to a BTC address. People commonly have many different BTC
addresses and an individual could theoretically use a unique address for every transaction in which
they engage. A BTC user can also spend from multiple BTC addresses in one transaction;
however, to spend BTC held within a BTC address, the user must have a private key, which is
generated when the BTC address is created and shared only with the BTC-address key’s initiator.
Similar to a password, a private key is shared only with the BTC-address key’s initiator and ensures
secured access to the BTC. Consequently, only the holder of a private key for a BTC address can
spend BTC from the address. Although generally, the owners of BTC addresses are not known
unless the information is made public by the owner (for example, by posting the BTC address in
-4-
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 5 of 22
an online forum or providing the BTC address to another user for a transaction), analyzing the
public transactions can sometimes lead to identifying both the owner of a BTC address and any
other accounts that the person or entity owns and controls.
16.
BTC is often transacted using a virtual-currency exchange, which is a virtual-
currency trading platform and bank. It typically allows trading between the U.S. dollar, other
foreign currencies, BTC, and other digital currencies. Many virtual-currency exchanges also act
like banks and store their customers’ BTC. Because these exchanges act like banks, they are
legally required to conduct due diligence of their customers and have anti-money laundering
checks in place. Virtual currency exchanges doing business in the United States are regulated
under the Bank Secrecy Act, codified at 31 U.S.C. § 5311 et seq., and must collect identifying
information of their customers and verify their clients’ identities.
B.
Blockchain Analysis
17.
While the identity of the BTC address owner is generally anonymous (unless the
owner opts to make the information publicly available), law enforcement can identify the owner
of a particular BTC address by analyzing the blockchain. The analysis can also reveal additional
addresses controlled by the same individual or entity. For example, a user or business may create
many BTC addresses to receive payments from different customers. When the user wants to
transact the BTC that it has received (for example, to exchange BTC for other currency or to use
BTC to purchase goods or services), it may group those addresses together to send a single
transaction. Law enforcement uses sophisticated, commercial services offered by several different
blockchain-analysis companies to investigate BTC transactions. These companies analyze the
blockchain and attempt to identify the individuals or groups involved in the BTC transactions.
Specifically, these companies create large databases that group BTC transactions into “clusters”
through analysis of data underlying BTC transactions.
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 6 of 22
18.
Through numerous unrelated investigations, law enforcement has found the
information provided by these companies to be reliable. The third-party blockchain-analysis
software utilized in this case is an anti-money laundering software used by banks and law
enforcement organizations worldwide.
This third-party blockchain analysis software has
supported many investigations, and been the basis for numerous search and seizure warrants, and
as such, has been found to be reliable. Computer scientists have independently shown that they
can use “clustering” methods to take advantage of clues in how BTC is typically aggregated or
split up to identify BTC addresses and their respective account owners.
19.
Since the blockchain serves as a searchable public ledger of every BTC transaction,
investigators may trace transactions to BTC exchangers.
Because those exchanges collect
identifying information about their customers, subpoenas or other appropriate process submitted
to these exchangers can, in some instances, reveal the true identity of the individual responsible
for the transaction.
II.
AL-QAEDA BTC TERROR FINANCE CAMPAIGN
20.
In April 2019, the administrator of the Telegram group “Tawheed & Jihad Media,”
which is now defunct, provided a Bitcoin address starting with 37yrx7 (“Defendant Property
AQ1”) as a repository for pro-al-Qaeda donations.
21.
Posts on the Tawheed & Jihad Media Telegram group during that same time frame
advertised fundraising campaigns to raise money for fighters. For example, on or about May 25,
2019, a user posted an image with the text: “FUNDRAISING CAMPAIGN” and “FINANCE
BULLETS AND ROCKETS FOR THE MUJAHIDEEN.” Muhajideen in this context refers to al
Qaeda fighters or soldiers. The post accompanying the image stated, “For Donations and more
details: Please message: @TawheedJihadMedia.”
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 7 of 22
22.
The media content of the Tawheed & Jihad Media Telegram group included
watermarked images of both Ansar al-Tawheed, a jihadist group that was created in or about March
2018, and the Syria-based pro-al-Qaeda collective Wa Haredh al-Moemeneen (“Incite the
Faithful”), of which Ansar al-Tawheed is a member. The collective Wa Haredh al-Moemeneen
was formed in approximately the fall of 2018 to oppose negotiations with the Syrian regime and,
as of May 2019, when the Telegram group administrator solicited donations to Defendant
Property AQ1, was fighting against Syrian government forces and their allies in northern Syria.
23.
On or about May 5, 2019, Defendant Property AQ1 sent its entire balance of BTC,
approximately 0.14610741 BTC, to a cluster of BTC addresses, containing the root address starting
with 3LcrD (“Defendant Property AQ2”).
24.
Al-Qaeda and affiliated terrorist groups have been operating a BTC money
laundering network using Telegram channels and other social media platforms to solicit BTC
donations to further their terrorist goals. As described below, al-Qaeda and affiliated terrorist
groups operate a number of Telegram channels and purport to act as charities when, in fact, they
are soliciting funds for the mujahedeen. Al-Qaeda and the affiliated terrorist groups are connected
and use multi-layered transactions to obfuscate the movement of BTC.
25.
Defendant Property AQ2 is a central hub used to collect funds and then
redistribute the funds within this money laundering network. From on or about February 25, 2019
through on or about February 5, 2020, Defendant Property AQ2 received approximately
15.27050803 BTC via 187 transactions.
26.
Between February 25 through on or about July 29, 2019, Defendant Property AQ2
sent approximately 9.10918723 BTC via 38 transactions to an account at a virtual currency
exchange (Defendant Property 1).
27.
Funds received by Defendant Property 1 were in turn sent to various online gift
-7-
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 8 of 22
card exchanges (“GCE”) that facilitate the sale of various gift cards in exchange for
cryptocurrency. This is a common method of money laundering known to law enforcement.
28.
On or about May 21, 2019, a BTC address starting with 3KhAH (Defendant
Property 2) sent approximately 0.02825625 BTC to Defendant Property AQ2.
29.
On or about May 29 and 30, 2019, Defendant Property 2 sent a total of
approximately 0.07640859 BTC to a BTC address starting with 3LZg4 (Defendant Property 3).
Within hours, Defendant Property 3 sent BTC to Defendant Property AQ2. This is a common
method of money laundering known to law enforcement as layering.
Leave an Impact Before Departure
30.
A Syria-based organization that translates to “Leave an Impact Before Departure,”
has conducted donation campaigns asking people to send support via BTC. As of July 30, 2020,
Leave an Impact Before Departure publicly claimed that it was a charity conducting humanitarian
work. However, this group has posted images on its Telegram channel regarding the prices of
military equipment needed to support the fighters inside of Syria.
-8-
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 9 of 22
31.
For example:
32.
As demonstrated above, these posts are seeking funds for military equipment.
33.
Leave an Impact Before Departure advertised an account at a virtual currency
exchange (Defendant Property 4) in the Telegram channel as its deposit address to which donors
could send BTC.
34.
Defendant Property 4 received approximately 14.58133728 BTC via 65
transactions for the period on or about March 10 to on or about December 11, 2019. This includes
seven transactions totaling approximately 0.73060999 BTC from Defendant Property AQ2.
35.
A cluster of approximately 29 BTC addresses with a root address starting with
1JtyZ received (Defendant Property 5 - Defendant Property 33) approximately 0.29328346
BTC via six transactions from Defendant Property AQ2. Cluster 1JtyZ sent:
a.
0.76916964 BTC via three transactions to Defendant Property 1; and
b.
0.2270076 BTC via two transactions to Defendant Property 4.
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 10 of 22
Al Ikhwa
36.
The Telegram channel for @Al_ikhwa_official appeared online in or around June
2018. The administrator of the group is listed as “@AL_ikhwa.” The group’s profile describes
them as an “independent charity on the ground in Syria” and that they “do not support any acts of
terrorism;” however, blockchain analysis and a review of related social media posting
demonstrates otherwise.
37.
Many of Al Ikhwa’s posts on Telegram solicit donations through PayPal, Western
Union and “anonymous payment” with BTC. Their first post stated, in part:
…supporting the brothers in Syria, Wives of [martyrs] and their families…[and]
We help those who defend the Muslims in [Syria].
38.
The Al Ikhwa administrator posted 11 BTC addresses for potential donors to fund
(“Al Ikhwa Cluster”). These 11 BTC addresses represent Defendant Property 34 through
Defendant Property 44.
39.
Blockchain analysis revealed the Al Ikhwa Cluster has received approximately
0.43820188 BTC via 18 transactions for the period October 15, 2018 to September 3, 2019.
40.
Approximately half of the BTC received by this cluster, 0.22524884 BTC, was sent
via four transfers to Defendant Property AQ2.
41.
Shortly thereafter Defendant Property AQ2 received BTC from the Al Ikhwa
Cluster, the proceeds of which were sent to Defendant Property 1.
42.
Al Ikhwa also operated a Facebook account which had posted four BTC addresses
for donations. Two of these BTC addresses are part of the Al Ikhwa Cluster and the other two
are part of a cluster of six BTC addresses (“Al Ikhwa Facebook Cluster”). These six BTC
addresses represent Defendant Property 45 through Defendant Property 50. Al Ikhwa
- 10 -
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 11 of 22
Facebook Cluster sent approximately 0.09413247 BTC during April and May 2020, via three
transfers to the Al Ikhwa Cluster.
43.
The documented practice of layering BTC transfers is observed herein, where Al
Ikhwa is attempting to obfuscate the source of BTC and conceal the identity of the owner.
44.
The Al Ikhwa administrator stated on Telegram:
Yeah, bitcoin makes a new one [i.e. address] every transaction so it’s good, it
always looks like it’s going to a different place..if you ever get [a] police visit and
they want to trap you to say you sent [donations] to Syria.. say they are
liars..because one person told me maybe they can’t track the bitcoin but they can
see IP address...But our Syria IP addresses are Turkish because our Internet comes
from Turkey. So if they try to trap someone and say you sent money here by
showing IP address, you say they are liars and you did business in Turkey.. cause
the IP address is Turkish.
45.
The Al Ikhwa money laundering network conducted layered transactions including
as follows:
a.
Al Ikhwa Cluster sent 0.09019068 BTC to cluster 3HvtR on or about
January 20, 2019, and then five days later this cluster sent 0.3372531 BTC to Defendant
Property 1.
b.
Al Ikhwa Cluster sent 0.05927279 BTC to address 36A2P on or about
April 2, 2019.
i. That same day, address 36A2P sent 0.041 BTC to Defendant Property 4;
ii. A few days later, address 36A2P sent 0.01953034 BTC to Defendant
Property 1;
c.
Al Ikhwa Cluster sent a total of 0.00016023 BTC via two transactions to
cluster 12Btp on or about October 19, 2018, and on or about March 2, 2019. On or about
July 16, 2019, cluster 12Btp sent 0.00651841 BTC to Defendant Property AQ2.
- 11 -
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 12 of 22
Malhama Tactical
46.
Open source reporting has linked Al Ikhwa to Malhama Tactical, a jihadist military
company that trains HTS fighters and has solicited BTC to finance HTS operations in Syria.
47.
Malhama Tactical is described in open source materials as a “jihadist private
military company.” It is comprised of fighters from Uzbekistan and the Russian Caucuses.
48.
The Twitter page of Malhama Tactical’s founding leader, Abu Salman Belarus,
describes him as the “Commander of Malhama Tactical, we are the military instructors, we’ve
been teaching rebels how to fight and provide emergency aid on battlefield since 2013.” In a
published interview in February 2019, Abu Salman Belarus stated that Malhama Tactical worked
with and trained HTS fighters. Moreover, in around July 2019, Malhama Tactical fundraised for
drones to be used for “artillery adjustment and reconnaissance.” In releasing an intelligence report
about that fundraising effort, the SITE Intelligence Group described Malhama Tactical as an HTS
Special Forces training group.
49.
Notably, an April 2020 online video from a news media outlet showed interviews
with members of Malhama Tactical about certain military tactics they used after recent battles in
Idlib, Syria. In a published video interview on or about June 11, 2020, a Malhama Tactical leader
named Ali al-Shishani described Malhama Tactical as a group of professional instructors who
trained members of the Syrian resistance and stated that HTS was one of the groups with whom
Malhama Tactical worked.
50.
The Twitter account of Malhama Tactical’s founder, Abu Salman Belarus, tweeted
two BTC addresses when soliciting donations. His tweets stated, “You can support and help us
anonymously and safely with Bitcoin wallet: 1J5x4,” and “Bitcoin wallet for support instructor
team of [MT]: 1LVwt.”
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 13 of 22
51.
These two Malhama Tactical addresses are part of a cluster of 23 addresses (“MT
cluster”) that received approximately 0.19501359 BTC via 15 transactions for the period July 13
to November 22, 2019. These 23 BTC addresses represent Defendant Property 51 through
Defendant Property 73.
52.
On or about October 9, 2018, MT cluster sent approximately 0.03839 BTC to
cluster 3Jb1M which has sent BTC to Defendant Property AQ2 on multiple occasions.
Reminders From Syria
53.
The Al Ikhwa Telegram channel forwarded
several posts from the
“@RemindersFromSyria” (“RFS”) channel, and the RFS channel has similarly forwarded Al
Ikhwa’s posts, many of which contained Al Ikhwa’s BTC addresses.
54.
RFS’s channel falsely states that they are “not affiliated with any fighting groups
in Syria” and they “do not promote any acts of violence and terrorism.” In fact, they have posted
numerous donation requests to support foreign fighters, threats to the United States, and radical
extremists abroad.
55.
For example, one post showed a photograph of a machine gun with a military-style
vest holding numerous additional magazines of bullets. Another post stated:
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 14 of 22
56.
On or about July 16, 2020, an HSI agent acting in an undercover capacity (“UCA”)
messaged the administrator of the RFS Telegram channel asking to donate BTC. The administrator
provided a BTC address starting with 1CoEM (Defendant Property 74). Subsequently,
Defendant Property 74 clustered with Defendant Property 75 and Defendant Property 76
(“RFS Cluster”).
57.
The administrator stated that he hoped for the destruction of the United States and
warned the UCA to be careful of possible criminal consequences from carrying out a jihad in the
United States.
58.
After these illicit conversations, the administrator shared his “own wallet” BTC
address starting with 1Q4xw (Defendant Property 77), which could be used for “jihad.”
59.
The administrator complained about U.S. drones and subsequently stated that
“Bullets and bombs is all affordable, but the drone stuff, its very hard to unless u have like anti
aircraft stuff which is like millions of dollars. Here they shoot it with a ground to air missile.. its
possible to hit them but hard. Or a 23mm machine gun. U know those big guns attached to a car..”
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 15 of 22
60.
RFS Cluster and Defendant Property 77 are further linked because they both, in
separate transitions, sent approximately 0.003769 BTC and 0.00235163 BTC respectively, at the
same time on or about July 23, 2020 to a cluster of BTC addresses with the main address starting
with 3QkrD.
61.
A majority of the BTC received by cluster 3QkrD is sent to a BTC address starting
with 1Kszb (Defendant Property 78), which is hosted at the same virtual currency exchange as
(Defendant Property 1).
62.
RFS Cluster also sent BTC to a cluster of BTC addresses with the main address
starting with 3KKa3. Like cluster 3QkrD, cluster 3KKa3 sent BTC to Defendant Property 78
multiple times.
Al Sadaqah
63.
Al Sadaqah (“charity” in Arabic) is a Syrian organization that operates social media
accounts on multiple platforms which seek to finance terrorism via BTC solicitations. They
described themselves as “an independent charity organization that is benefiting and providing the
Mujahidin in Syria with weapons, finical [sic] aid and other projects relating to the jihad. You can
donate safely and securely with Bitcoin.”
64.
On its Telegram channel, Al Sadaqah openly solicited donations via BTC to an
address starting with 15K9Z (Defendant Property 79, which clustered with Defendant Property
80).
65.
In one such post (depicted below), they directed people to “Donate anonymously
with Cryptocurrency” to Defendant Property 79, to support “the mujahidin in Syria with
weapons, financial aid, and other projects assisting the jihad.”
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 16 of 22
66.
Example posts are shown here:
COUNT ONE – FORFEITURE
(18 U.S.C. § 981(A)(1)(G)(i))
67.
The United States incorporates by reference the allegations set forth in Paragraphs
1 to 66 above as if fully set forth herein.
68.
Al-Qaeda, HTS, and ANF are designated foreign terrorist organizations.
69.
The above described scheme involves these designated foreign terrorist
organizations’ campaigns to finance terrorism via BTC solicitations involving the Defendant
Properties.
70.
The Defendant Properties are subject to forfeiture to the United States, pursuant to
18 U.S.C. § 981(a)(1)(G)(i), as assets of a foreign terrorist organization engaged in planning or
perpetrating any federal crime of terrorism (as defined in section 2332b(g)(5)) against the United
States, citizens or residents of the United States, or their property, and as assets affording any
person a source of influence over any such entity or organization.
- 16 -
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 17 of 22
PRAYER FOR RELIEF
WHEREFORE, the United States prays that notice issue on the Defendant Properties as
described above; that due notice be given to all parties to appear and show cause why the forfeiture
should not be decreed; that judgment be entered declaring that the Defendant Properties be
forfeited to the United States for disposition according to law; and that the United States be granted
such other relief as this Court may deem just and proper, together with the costs and disbursements
of this action.
Dated: August 13, 2020
Washington, D.C.
Respectfully submitted,
MICHAEL R. SHERWIN,
N.Y. Bar Number 4444188
ACTING UNITED STATES ATTORNEY
By:
/s/ Zia Faruqui
ZIA M. FARUQUI, D.C. Bar No. 494990
JESSICA BROOKS
Assistant United States Attorneys
Fourth Street, NW
Washington, DC 20530
(202) 252-7566 (main line)
and
ALEX HUGHES
DANIELLE ROSBOROUGH, D.C. Bar No. 1016234
Trial Attorney
National Security Division
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20004
Office: (202) 514-0849 (main line)
Attorneys for the United States of America
- 17 -
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 18 of 22
VERIFICATION
I, Christopher Janczewski, a Special Agent with the Internal Revenue Service-Criminal
Investigations, declare under penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing
Verified Complaint for Forfeiture In Rem is based upon reports and information known to me
and/or furnished to me by other law enforcement representatives and that everything represented
herein is true and correct.
Executed on this 13th day of August, 2020.
/s/ Chris Janczewski
Special Agent Chris Janczewski
IRS-CI
_
I, Joseph Consavage, a Special Agent with the Homeland Security Investigation, declare
under penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing Verified Complaint for
Forfeiture In Rem is based upon reports and information known to me and/or furnished to me by
other law enforcement representatives and that everything represented herein is true and correct.
Executed on this 13th day of August, 2020.
/s/ Joseph Consavage
Special Agent Joseph Consavage,
Homeland Security Investigation
_
- 18 -
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 19 of 22
ATTACHMENT A:
Defendant Property
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BTC Address
1421chCK32pV32Tw5MQbiUiKWKvnmj7d91
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3LZg4hHfbpLrJBagQqXp2agGbwrz9XpXai
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Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 20 of 22
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- 20 -
Case 1:20-cv-02228 Document 1 Filed 08/13/20 Page 21 of 22
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- 22 -
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