Senator Elizabeth Warren led a bipartisan group of over 100 members of Congress in sending a letter to the Biden administration expressing concern over cryptocurrency being used to finance terrorism.
The letter, signed by 28 senators and 76 representatives from both parties, was addressed to Treasury under Secretary Brian Nelson and National Security Advisor Jake Sullivan on October 17th.
It highlighted recent reports that Hamas and Palestinian Islamic Jihad raised over $130 million in cryptocurrency donations between August 2021 and June 2023..
Quoting from the letter,
“That the deadly attack by Hamas on Israeli civilians comes as the group has become ‘one of the most sophisticated crypto users in the terror-finance domain’ clarifies the national security threat crypto poses to the U.S. and our allies.”
The letter further emphasized the need for swift and comprehensive actions to curb illicit crypto activities, particularly as Congress considers legislation to combat money laundering and illicit finance risks related to cryptocurrency.
In the letter, the lawmakers posed nine critical questions, seeking insights into the administration’s knowledge of terrorist financiers.
Senator Warren has been one of the most outspoken critics of cryptocurrencies in Congress, actively pushing for regulation.
Her Digital Asset-Money Laundering Act, introduced in December and re-introduced in the current Congress, had already gained support, but recent events have brought more lawmakers on board.
Notably, the letter also boasts signatures from other anti-crypto legislators, such as Roger Marshall and Sean Casten, and even Senate Banking Committee Chair Sherrod Brown, who had previously not supported Warren’s bill.
Additionally, while some prominent crypto advocates like Cynthia Lummis, Kirsten Gillibrand, and Patrick McHenry did not sign the letter, many signatories had no prior stance on cryptocurrency.
However, some, like Jake Auchincloss and Josh Gotheimer, who had previously supported crypto, lent their signatures to the letter.
The Treasury Department has been actively monitoring the use of virtual assets by groups like Hamas and the Palestinian Islamic Jihad to raise and transfer funds.
The Treasury also announced sanctions on October 18th against a cryptocurrency exchange in Gaza and its operator, along with several other collaborators involved with Hamas.
In Brian Nelson’s remarks released by the Treasure department on October 17, in preparation for a Deloitte Anti-Money Laundering Conference, Nelson referred to Hamas as having “well-honed methods of surreptitiously accessing the formal financial system,” including secret portfolios, shell companies, and fake charities.
He stated that the Treasury is “closely monitoring how Hamas and Palestinian Islamic Jihad (PIJ) use virtual assets to raise and move funds” and will continue efforts to increase transparency and combat illicit financing.
Also Read : Israel-Hamas War Pushes Senator Warren’s Crypto Legislation
