US Senators Call for Action Against Binance and Tether
Two US Senators, Cynthia Lummis and French Hill, have written a letter to the US Department of Justice (DoJ) urging them to take swift action against cryptocurrency exchange Binance and stablecoin issuer Tether. The Senators allege that these platforms are aiding the militant group Hamas by serving as intermediaries for illicit activities and facilitating terrorism. They specifically called on the DoJ to conclude its investigation into Binance and make a charging decision based on their level of culpability.
Tether Pushes Back
Tether has responded to the Senators’ letter, stating that it contains imprecise information and portrays an unfair and skewed image of Tether and the crypto industry as a whole. Tether denies any violation of sanctions laws or the Bank Secrecy Act and argues that there is no evidence to support these allegations.
Hamas Funding Debate
The issue of crypto being used to fund Hamas has sparked a contentious debate. Blockchain analytics firm Elliptic has stated that there is no evidence to suggest that Hamas obtained significant amounts of cryptocurrency for its attacks on Israel. Elliptic reported that one pro-Hamas campaign raised $21,000 since the October 7 attack, with most of these funds frozen. This amount is significantly lower than the $93 million claimed in a Wall Street Journal article.
Hot Take: Crypto Industry Faces Accusations of Terrorism Financing
The allegations made by US Senators against Binance and Tether highlight the ongoing concern over the potential misuse of cryptocurrencies for illicit activities such as terrorism financing. While Tether denies any wrongdoing, this incident underscores the need for robust regulations and compliance measures in the crypto industry to prevent criminal actors from taking advantage of digital assets. As governments continue to grapple with the challenges posed by cryptocurrencies, it is crucial for the industry to work towards building trust and transparency to ensure its long-term viability.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies.Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
