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- 1 The ongoing war between Hamas and Israel reignited the debate due to the heavy usage of crypto by the terrorist group.
- 2 A letter authored and pushed forward by Senator Elizabeth Warren emphasized the role of cryptocurrencies in financing terrorism activities.
The issue of terror funding is as old as terrorism itself, it just changed forms with time. In this part, crypto-financed terrorism is among the recent trends. The ongoing conflict between Hamas and Israel reignited the debate due to the heavy usage of crypto by the terrorist group.
Many countries have showcased concerns about the instance and role of crypto while United States lawmakers took one step ahead more than just condemnation.
A letter mainly authored and pushed forward by Senator Elizabeth Warren on October 17, 2023. It emphasized the role of cryptocurrencies in financing terrorism activities around the world. The letter becomes highly significant given the signature and authorization of more than a hundred lawmakers.
As reported, 28 Senators and 76 House of Representatives members signed the letter. The lawmakers were from both parties and included independent ones while the Democrats were prominent in the signers.
It was sent to the Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson and National Security Advisor Jake Sullivan.
The Gaza-based Islamic Resistance Movement, popularly known as Hamas, infiltrated Israel and carried out terrorist activities since October 7, 2023. The attack on the Jewish country was condemned across the world. However, the recent attack also brought attention to the use of crypto assets for terror and war funding.
A news article depicting similar information about crypto donations raised by Hamas and Palestine Islamic Jihad (PIJ) acted as a base for the letters signed by the U.S. lawmakers. The news noted that both terror groups accumulated over $130 Million worth of crypto assets in the name of donations.
Crypto Terror Funding Concern for United States and Allies
Senator Warren’s written letter noted that the recent deadly attack on Israel and its civilians from Hamas shows the terrorist group’s proven the group’s increasing proficiency as “one of the most sophisticated crypto users in the terror-finance domain.” This underscores the national security threat that cryptocurrency poses not only to the United States but also to its allies.
As Congress contemplates legislative measures aimed at addressing crypto-related money laundering and illicit finance risks, a call has been made to take prompt and decisive action to effectively combat illicit crypto activities.
The message posed nine questions to the recipients, seeking information regarding the Biden administration’s knowledge about the financiers of terrorism, the actions being taken to counter the use of cryptocurrency in funding terrorism and inquiring about any additional resources required for these efforts.
Senator from Massachusetts, Elizabeth Warren, who authored the letter, stands as one of the leading crypto critics within the U.S. Congress. She initially introduced the Digital Asset Anti-Money Laundering Act in December and has since reintroduced it in the present Congress.
Prior to the outbreak of the conflict between Israel and Hamas, the bill was already gaining support, but the ongoing hostilities have further bolstered her allies in this legislative endeavor.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
