Treasury Official’s Testimony
In a testimony before the House Financial Services Committee, Brian Nelson, the US Treasury Undersecretary for Terrorism and Financial Intelligence, addressed the reports claiming significant crypto funding for Hamas. Nelson clarified that the reported amounts referred to the total assets held in wallets, not specifically funds directed to Hamas or the Palestinian Islamic Jihad. He emphasized that terrorists primarily use traditional financial channels rather than digital assets.
Contradicting Reports
The Wall Street Journal had initially linked tens of millions of dollars in crypto payments to Hamas, Palestinian Islamic Jihad, and others based on a blog post by Elliptic, a blockchain analytics firm. However, subsequent edits to the post revealed a misunderstanding regarding the assets received by terrorists.
WSJ Revises Reported Numbers
After facing scrutiny, The Wall Street Journal revised its report, stating that the Palestinian Islamic Jihad group received $12 million instead of the initially claimed $93 million. Elliptic contested the initial figures, citing insufficient evidence to support substantial crypto fundraising.
Data Misuse in Legislation
Lawmakers, including Senators Sherrod Brown and Elizabeth Warren, continued to reference the erroneous figures to advocate for stricter crypto regulations under the guise of national security. Representative Emmer expressed concern over the misuse of data in legislative discussions and urged the Treasury to correct the record. He stressed the importance of accurate information in the policymaking process.
Treasury’s Commitment to Combating Terrorism Financing
During the committee hearing, Nelson reaffirmed the government’s commitment to disrupting terrorist financing through digital assets. He highlighted the need for additional tools and resources to combat illicit finance in virtual asset markets and expressed willingness to collaborate with Congress on this matter.
Conclusion
The US Treasury has refuted claims of significant crypto funding for Hamas and clarified that reported amounts likely misrepresented total wallet assets. Despite corrections, lawmakers continued to use disputed data to support crypto regulations. It is crucial for accurate information to be used in legislative discussions to ensure fair and effective policymaking. The Treasury reiterated its commitment to combating terrorist financing through digital assets and expressed a desire to work with Congress to enhance measures against illicit finance in virtual asset markets.
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