Gaza-based Crypto Exchange Sanctioned for Terrorism Financing
The US Treasury Department has sanctioned a Gaza-based crypto exchange, Buy Cash Money and Money Transfer Company, along with nine other entities linked to Hamas. According to the Treasury Department, the exchange has a history of enabling terrorism financing. In June 2021, Israel’s National Bureau for Counter Terrorist Financing seized several wallets connected to a Hamas fundraising campaign, one of which belonged to Buy Cash. The exchange has also been used to transfer funds by affiliates of other terrorist groups. In a separate blog post, blockchain analytics firm Elliptic revealed that the exchange’s wallet addresses have received over $30 million worth of crypto since 2015, but only a small portion is linked to terrorism financing.
Treasury Secretary Janet Yellen Targets Hamas’s Financiers
Treasury Secretary Janet Yellen stated that the US government is taking swift action to target the financiers and facilitators of Hamas. This move comes as part of efforts to crack down on terrorism financing. The sanctions imposed on Buy Cash Money and Money Transfer Company are an example of this proactive approach.
Reports Exaggerate Crypto’s Role in Terrorism Financing
Crypto analytics firm Chainalysis has accused some reports of exaggerating the extent to which cryptocurrencies are used in terrorism financing. It claims that recent estimates include funds that are not explicitly related to terrorism financing. For example, one address allegedly used for terrorism financing obtained $82 million worth of crypto, but only $450,000 came from a wallet associated with terror activities.
Hot Take: Combating Terrorism Financing in the Crypto Space
The sanctioning of Buy Cash Money and Money Transfer Company by the US Treasury Department demonstrates a proactive approach in combating terrorism financing within the crypto space. By targeting entities that enable such activities, authorities aim to disrupt the flow of funds to terrorist organizations. However, it is important to accurately assess the extent of crypto’s involvement in terrorism financing. Reports should provide accurate information to avoid exaggeration and misrepresentation, ensuring a balanced understanding of the issue. By addressing this problem effectively, regulators can maintain the integrity and security of the crypto industry.
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