US Lawmakers Urge President Biden to Address Crypto-Backed Terrorism
- The senators claimed Hamas relies heavily on crypto for funding.
- Senator Warren is promoting a bill that seeks to limit the use of crypto to finance terrorism.
- US authorities recently sanctioned a Gaza-based exchange for its alleged ties to Hamas.
Anti-crypto senator Elizabeth Warren has taken her campaign against the crypto industry to the White House, urging the administration to tackle the use of cryptocurrencies for fraud. Warren reportedly led a group of 28 senators and 72 members of the House of Representatives in signing a letter about the use of cryptocurrency to finance fraud.
The letter was written to National Security Advisor Jake Sullivan and Treasury Under Secretary for Terrorism and Financial Intelligence, Brian Nelson. The writers referenced a news report stating that, between August 2021 and June 2023, Hamas and other groups had received over $130 million in cryptocurrency donations.
The lawmakers wrote that “the deadly attack by Hamas on Israeli civilians comes as the group has become ‘one of the most sophisticated crypto users in the terror-finance domain’ clarifies the national security threat crypto poses to the U.S. and our allies.”
The letter also sought to know what information President Joe Biden’s government possesses about terrorists’ financiers and the steps being taken to prevent terrorism through the use of cryptocurrency.
The letter said:
Given the clear and present danger posed by the financing of these and other militant organizations, we ask the administration to provide additional details on its plan to prevent the use of crypto for the financing of terrorism. Congress and this administration must take strong action to thoroughly address crypto-illicit finance risks before they can be used to finance another tragedy.
US lawmakers have frequently expressed concerns about the lack of clear laws governing the use of cryptocurrencies. Many believe crypto has become a safe haven for fraudsters to launder illegal funds.
For example, Nelson, in his statements for a Deloitte Anti-Money Laundering conference on Tuesday, claimed Hamas was well-funded and “possessed well-honed methods of surreptitiously accessing the formal financial system.” He alleged that the organization had secret financial portfolios and used fake philanthropies and shell companies for its schemes.
He remarked:
We are closely monitoring how Hamas and Palestinian Islamic Jihad use virtual assets to raise and move funds, and Treasury will continue to establish transparency in the virtual asset ecosystem in order to combat illicit activity by criminals, rogue states, and terrorist financiers.
Furthermore, Senator Warren has been promoting a new bill that seeks to tackle money laundering and sanctions abuses in the cryptocurrency space. The law, which cryptocurrency lobbyists have claimed would seriously jeopardize the American crypto industry, is still unlikely to pass this year since it hasn’t gained enough backing in committee.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
