A Chinese businessman was arrested on Friday by the Barcelona police, known as Mossos d'Esquadra, for funding the Hamas terror organization through his beauty salon.
The man is accused of sending Hamas 600,000 Euros (some $710,000) in crypto-assets to finance their terror operations, the police said in a statement.
"We have seized more than 100,000 euros in cash, jewellery, weapons, cigars, and blocked several bank accounts," the Mossos added in the statement.
Investigators traced at least 31 crypto transactions from virtual wallets controlled by the suspect to addresses suspected of being linked to an entity used by Hamas, according to Reuters.
Their investigation began last June during a separate probe into fraud and money laundering, police said.
US Treasury targets Hamas-linked charities, saying covert use of civilian groups endangers Palestinians
On January 21, the US Treasury’s Office of Foreign Assets Control (OFAC) announced that it was taking action against nonprofit organizations linked to Hamas, citing the group’s use of civilian fronts to conceal financing and activities.
The Treasury sanctioned Waed Society Gaza, Al-Nur Society Gaza, Qawafil Society Gaza, Al-Falah Society Gaza, Merciful Hands Gaza, and Al-Salameh Society Gaza, stating that the organizations had been "integrated into Hamas’s military wing."
“Hamas continues to show a callous disregard for the welfare of the Palestinian people,” Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley stated.
The measures are intended to disrupt covert channels and strengthen oversight of charitable networks, according to the OFAC.
Shir Perets contributed to this report.