US Lawmakers Investigate Tether and Binance for Alleged Hamas Crypto Transactions
Binance and Tether, two prominent players in the crypto industry, are facing scrutiny from the US government over their alleged involvement in facilitating crypto transactions for Hamas. Senator Cynthia Lummis and Representative French Hill raised concerns about Tether’s role in a letter to US Secretary of Justice Merrick Garland. The lawmakers cited media reports that suggested both Binance and Tether enabled crypto donations to the UN-designated terrorist group.
Did Binance Support Terrorists?
A recent report by the Wall Street Journal revealed that cryptocurrencies were allegedly used to fund three prominent organizations in the Middle East: Hamas, Palestinian Islamic Jihad, and Hezbollah. Lummis and Hill expressed concern that Binance onboarded suspicious parties without proper regulation. Israeli authorities seized the accounts of these entities due to their connections with Hamas.
Binance has denied the allegations, stating that it has implemented stronger measures than other exchanges to combat terrorism financing. However, the accusations highlight the need for robust crypto regulations to prevent illicit activities facilitated by blockchain technology.
Tether Believed to Have Acted Negligently
Tether, the issuer of USDT, also faced accusations of sanctions violations for allegedly not blocking wallets linked to Hamas in a timely manner. Similar to Binance, Tether cooperated with Israeli authorities to freeze Hamas accounts. Tether defended itself by stating that it has collaborated with multiple law enforcement agencies worldwide to combat malicious activities.
The US Department of Justice (DoJ) is currently investigating both Binance and Tether. However, jurisdictional challenges have caused delays in the investigations. Senator Lummis and Representative Hill have been advocating for clearer crypto regulations and continue to push for comprehensive legislation in Congress.
Hot Take: The Importance of Crypto Regulations in Preventing Illicit Activity
The allegations against Binance and Tether regarding their alleged involvement in Hamas crypto transactions highlight the increasing importance of robust crypto regulations. The rising use of blockchains for illicit activities emphasizes the need to prevent cryptocurrencies from being misused for illegal or harmful purposes. Clearer regulations can ensure that platforms like Binance and Tether have adequate anti-money laundering controls in place to prevent terrorist financing and other illicit activities. As the crypto industry continues to evolve, it is crucial for governments and regulatory bodies to establish comprehensive frameworks that strike a balance between innovation and security.
By
By
By
By
By