105 lawmakers from both parties, led by Senators Elizabeth Warren, Roger Marshall, and Representative Sean Casten, have urged the Biden administration to take immediate action against Hamas and the Palestinian Islamic Jihad’s use of cryptocurrency.
Recent news articles have detailed how Hamas and the Palestinian Islamic Jihad increasingly rely on cryptocurrencies to fund their operations. Israel’s seizure of Hamas-affiliated cryptocurrency wallets, coupled with the increasing use of digital assets by terrorist organizations, has set off alarm sirens.
In the meantime, Israeli law enforcement authorities have taken forceful action this week against cryptocurrency accounts suspected of financing Hamas. In response to recent attacks, their efforts to sever ties between crypto markets and the militant organization have intensified.
In addition, since the conflict began on October 7, the leading cryptocurrency exchange, Binance, has already closed over 100 accounts.
Recent reports indicate that U.S. authorities have confiscated “tens of millions of dollars” worth of cryptocurrencies from Hamas-affiliated addresses. In the meantime, the legislators’ letter requests transparency regarding the extent of crypto’s involvement in funding these organizations and the actors facilitating these financial transactions.
This bipartisan drive for action coincides with President Biden’s upcoming meeting with Israeli Prime Minister Netanyahu after the recent attack on Gaza. How the Biden administration will respond to these legislators’ call for action in addressing crypto illicit finance risks remains to be seen.
Legislators have expressed grave concern over the use of digital assets by these organizations to fund their operations and circumvent U.S. sanctions.
Senator Elizabeth Warren, a prominent advocate for stricter anti-money laundering regulations for cryptocurrency in the United States, has been rallying bipartisan support for legislation designed to counter the potential use of cryptocurrencies to finance terrorism. Notably, many senators now view the threat of crypto-financed terrorism as a genuine and urgent concern.
