Senator Elizabeth Warren (D-Mass.) has expressed concerns about the use of cryptocurrency for terrorist financing and has called on the Biden administration to address this issue. Her worries were outlined in a bipartisan letter signed by more than 100 lawmakers, including Sen. Roger Marshall (R-Kan) and Rep. Sean Casten (D-Ill).
Warren, a Massachusetts Democrat, highlighted the secret fundraising activities of the Hamas terrorist organization through cryptocurrency, which it used to carry out attacks against Israel. She is seeking more information about how these criminal organizations managed to evade U.S. sanctions and how the Biden administration plans to tackle terrorist financing through cryptocurrency in the future.
“We need a clear and strong plan to address the growing threat of terrorists exploiting cryptocurrency to fund their activities,” Warren stated.
Concerns about Cryptocurrency Funding for Terrorist Organizations
The lawmakers revealed that between August 2021 and June 2023, Hamas and Palestinian Islamic Jihad (PIJ) raised a staggering $130 million in cryptocurrency funds. This highlights the urgency of addressing the issue to prevent further funding of terrorist activities. These transfers were conducted using various digital currencies, making them challenging to track and regulate.
Furthermore, it has been discovered that PIJ has transferred $12 million in crypto to Hezbollah, another extremist Muslim faction, since the beginning of this year. This demonstrates the interconnectedness of these groups and the need for stricter regulations regarding cryptocurrency transactions.
“The ability of terrorists to exploit the anonymity and decentralized nature of cryptocurrency poses a significant challenge for governments worldwide in their efforts to combat terrorist financing,” stated Warren and her fellow lawmakers.
The Need for a Stronger Plan
In their letter, the lawmakers emphasized the present danger posed by this unchecked system. They quoted a Telegram post by Hamas that highlighted the crucial role of money in supporting their ongoing war efforts. This underscores the need for an effective strategy to curb the use of cryptocurrency by terrorists.
The call for a stronger and clearer plan from the Biden administration comes at a time of heightened tensions between Hamas and Israel. The recent attacks have resulted in the loss of many lives, and the Israel Defense Force (IDF) has launched a retaliatory attack on the Gaza Strip, where most armed groups are based.
Senator Elizabeth Warren and other U.S. senators have requested a prompt response from the U.S. Treasury and Washington DC by October 31. They urge the U.S. government to take decisive action against crypto’s use for terrorist financing, building upon the multiple sanctions that have already been imposed on hostile forces involved in global terrorism.
The Importance of Disrupting Terror Financing
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has been actively disrupting terror financing by sanctioning individuals and entities connected to terrorism. In a recent statement, Treasury Secretary Janet Yellen highlighted the success of these efforts, stating that over 1,000 individuals and entities have been targeted.
“The latest rounds of aggression with Israel have further motivated us to dismantle the malicious financial networks established by the Iranian regime and their Islamic jihad groups,” the Treasury Department stated in response to the ongoing conflicts. This shows the determination of the U.S. government to dismantle the financial infrastructure supporting terrorist organizations.
