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A bipartisan group of legislators and senators has raised concerns about the role of cryptocurrency in terrorism.
Letter Raises Crypto Concerns
US Senator Elizabeth Warren has gathered a group of over 100 senators and members of the House of Representatives to pen a letter that raises questions about crypto financing in the terrorist activities of Hamas and Palestinian Islamic Jihad. The letter, signed by 28 senators and 76 members of the House of Representatives, was addressed to Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson and National Security Advisor Jake Sullivan.
The letter refers to a Wall Street Journal article, according to which Hamas and the Palestinian Islamic Jihad had received donations for over $130 million in cryptocurrency between August 2021 and June 2023. These funds were allegedly used to support their invasion of Israel earlier this month.
Questions For White House And Congress
The letter emphasizes the growing sophistication of terrorist organizations in their use of cryptocurrencies and highlights the national security threat posed by crypto to the U.S. and its allies. Additionally, the authors urged swift and decisive action to curb illicit crypto activity and questioned whether the White House and President Biden possess information on the funding of these terroristic attacks and what measures are being taken to combat crypto-funded terrorism.
The letter also appeals to Congress to make decisive moves against the use of cryptocurrency for funding terrorism. The authors seek to understand what additional resources the U.S. government requires to effectively combat this threat.
Prominent Signatories
Senator Warren has always projected an anti-crypto stance. She is also working on a bill that is seeking to regulate the crypto industry.
She was joined by 28 other senators and 76 members of the House of Representatives in this plea to address crypto’s role in terrorism. Notably, Senator Roger Marshall and Representative Sean Casten, both known for their anti-crypto stances, have also signed the letter.
Senate Banking Committee chair Sherrod Brown, an advocate for crypto regulation, has also added his signature to the document. It is worth noting that some signatories have no prior public record of involvement in crypto matters.
Treasury Department’s Response
In response to these concerns, the Treasury Department issued a statement regarding Hamas. Treasury Under Secretary Brian Nelson commented at a Deloitte Anti-Money Laundering conference on October 17.
He stated,
“We are closely monitoring how Hamas and Palestinian Islamic Jihad (PIJ) use virtual assets to raise and move funds […] and Treasury will continue to establish transparency in the virtual asset ecosystem to combat illicit activity by criminals, rogue states, and terrorist financiers.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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