The U.S. Treasury has clarified that earlier media reports exaggerated the amount of crypto funding received by the Palestinian militant group, Hamas.
In a testimony before Congress on Wednesday, Treasury Undersecretary Brian Nelson said Hamas has received “relatively small amounts” of crypto financing, countering earlier claims in media outlets like the Wall Street Journal that tied tens of millions of dollars in crypto payments to Hamas.
The initial reporting was based on a misunderstanding of blockchain analytics data that failed to properly disaggregate flows to Hamas from the total figures.
When pressed by Congressman Tom Emmer, Nelson admitted that “terrorists still prefer, frankly, to use traditional products and services” over cryptocurrency.
However, Nelson still argued that additional tools and oversight are needed to combat illicit crypto financing, noting the Treasury remains “focused on disrupting these groups’ ability to leverage digital assets.”
The exchanges between Nelson and lawmakers highlight the narrative battle around cryptocurrencies. While critics have overstated links to terrorism to further regulate the space, evidence suggests crypto plays a small but growing role in enabling criminal activities.
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