US Lawmakers Call for Action to Prevent Terrorist Use of Cryptocurrencies
A bipartisan group of US lawmakers, including senators Elizabeth Warren and Roger Marshall, and representative Sean Casten, have sent a letter to President Joe Biden urging him to take swift action to prevent terrorist groups from using cryptocurrencies for fundraising. The call comes in response to the surprise attack on Israel by Hamas.
In the letter, the lawmakers express concern over the use of cryptocurrencies by Hamas and other militant organizations in the financing of terrorism. They highlight that these organizations have raised millions of dollars in cryptocurrency in recent months, evading US sanctions in the process.
Request for Information
The lawmakers have requested information from the Biden administration regarding its strategy to stop terrorist groups from using cryptocurrencies. They specifically ask for an estimate of the amount of cryptocurrency still held in Hamas-controlled wallets, the percentage of cryptocurrency used to fund Hamas’ operations, and any data on individuals involved in transferring cryptocurrency to and from these organizations.
Hamas’ Sophisticated Use of Crypto
The letter emphasizes that Hamas has become one of the most sophisticated users of cryptocurrency in the realm of terror finance. The lawmakers argue that this highlights the national security threat posed by cryptocurrencies to the United States and its allies.
Crypto as a Tool for Terrorism Financing
Terrorists and illicit groups have increasingly turned to cryptocurrencies as a means of fundraising, making it more challenging to prevent such activities. Israeli Defense Minister Yoav Gallant has also expressed concerns about the use of digital assets by these groups.
Israel’s Efforts to Combat Crypto Funding
Israel has taken action against crypto funding for terrorist activities. In May, it seized control of around 190 cryptocurrency accounts on Binance, including those belonging to Hamas-affiliated Palestinian businesses. Senator Elizabeth Warren has previously referred to Binance as a “hotbed” of illegal activity.
Hot Take: US Lawmakers Demand Action to Curb Terrorist Use of Cryptocurrencies
A bipartisan group of US lawmakers, led by senators Elizabeth Warren and Roger Marshall, and representative Sean Casten, has called on President Joe Biden to take swift action in preventing terrorist groups like Hamas from using cryptocurrencies for fundraising. The legislators express concerns over the use of digital assets by these organizations to finance acts of terrorism and evade US sanctions. They request information from the Biden administration on its strategy to combat this issue, including estimates of cryptocurrency held by Hamas and the percentage used for funding operations. The lawmakers highlight the sophistication of Hamas’ crypto usage and emphasize the national security threat posed by cryptocurrencies. Israel has already taken steps to combat crypto funding for terrorism activities, seizing control of numerous accounts on Binance.
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