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WASHINGTON – U.S. Senators Maggie Hassan and Jeanne Shaheen joined a bipartisan group of their colleagues, led by Senators Elizabeth Warren (D-MA) and Roger Marshall (R-KS), in elevating grave issues about reports that within the months main as much as Hamas’s terrorist assault on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised tens of millions of {dollars} by way of crypto, evading U.S. sanctions to fund their operations. The lawmakers are asking the Biden administration to supply details about the way it plans to forestall crypto-financed terrorism.
“Between August 2021 and this previous June, (Hamas and PIJ) raised over $130 million in crypto, and moved tens of millions amongst one another… Given the clear and current hazard posed by the financing of those and different militant organizations, we ask the Administration to supply extra particulars on its plan to forestall using crypto for the financing of terrorism,” wrote the lawmakers in a letter to Nationwide Safety Advisor Jake Sullivan and Brian Nelson, Below Secretary for Terrorism and Monetary Intelligence on the Division of the Treasury.
The lawmakers famous that each the Israeli and U.S. governments have warned of the menace that crypto poses within the battle in opposition to terrorism, and Israel beforehand seized crypto belongings from terrorist organizations, together with Hamas and Hezbollah. Consultants imagine that solely a small proportion of the general crypto funds flowing by way of Hamas and PIJ have been captured.
“Congress and this Administration should take sturdy motion to completely deal with crypto illicit finance dangers earlier than it may be used to finance one other tragedy. As Congress considers legislative proposals designed to mitigate crypto cash laundering and illicit finance dangers, we urge you to swiftly and categorically act to meaningfully curtail illicit crypto exercise and defend our nationwide safety and that of our allies,” concluded the lawmakers.
The lawmakers are asking a set of questions on Treasury and the Biden administration’s plans to handle the intense nationwide safety threats posed by crypto’s use to finance terrorism by October 31, 2023.
That is a part of Senator Hassan’s ongoing oversight of cryptocurrency. She launched bipartisan legislation to crack down on darkish net drug trafficking, together with with cryptocurrency, and pressed for action on the prison use of cryptocurrency following a cyberattack on the City of Peterborough. Senator Hassan additionally launched a bipartisan bill to enhance oversight of cryptocurrency mining operations in international international locations.
To learn the lawmakers’ letter to the Biden administration, click on here or see under:
Pricey Below Secretary Nelson and Mr. Sullivan:
We write to precise our grave concern relating to experiences that, within the months main as much as their brutal and horrific October seventh assault on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised tens of millions of {dollars} in crypto – evading U.S. sanctions and funding their operations. Certainly, between August 2021 and this previous June, the 2 teams raised over $130 million in crypto, and moved tens of millions amongst one another, “with PIJ sending over $12 million in crypto to Hezbollah since 2023. Because the Wall Avenue Journal experiences, “[r]esearchers who examine Hamas’s financing mentioned crypto stays certainly one of quite a few instruments the group makes use of to boost funds.” Given the clear and current hazard posed by the financing of those and different militant organizations, we ask the Administration to supply extra particulars on its plan to forestall using crypto for the financing of terrorism.
On the morning of October seventh, Hamas militants fired an estimated 2,200 rockets in the direction of Israel, as lots of of militants entered Israel on bikes and motorboats. As of October 11, 2023, over 1,200 folks have died in Israel because of the assaults, and a pair of,900 have been wounded. Whereas “[i]t couldn’t be decided whether or not the crypto they acquired was immediately used to finance the assault,” Hamas has been clear in its solicitations for crypto concerning the meant use of the belongings. Because the group mentioned in a Telegram submit asking for bitcoin, “[t]he actuality of jihad is the expenditure of effort and vitality, and cash is the spine of battle.”
Each the Israeli and U.S. governments have warned of the menace that crypto poses within the battle in opposition to terrorism. The Israeli authorities has seized crypto belongings from terrorist organizations –together with Hamas and Hezbollah – earlier than. As just lately as August 2023, the nation’s Nationwide Bureau for Counter-Terror Financing ordered the seizure of 67 PIJ-owned accounts with Binance, the world’s largest crypto trade. Regardless of these and different seizures, specialists imagine that solely “a small proportion of the general quantity of funds that flowed by way of” Hamas and PIJ wallets has been seized.
That the lethal assault by Hamas on Israeli civilians comes because the group has turn out to be “some of the refined crypto customers within the terror-finance area”11 clarifies the nationwide safety menace crypto poses to the U.S., and our allies. Congress and this Administration should take sturdy motion to completely deal with crypto illicit finance dangers earlier than it may be used to finance one other tragedy. As Congress considers legislative proposals designed to mitigate crypto cash laundering and illicit finance dangers, we urge you to swiftly and categorically act to meaningfully curtail illicit crypto exercise and defend our nationwide safety and that of our allies. We subsequently request solutions to the next questions relating to Treasury’s plans to handle the intense nationwide safety threats posed by way of cryptocurrency to finance terrorism no later than October 31, 2023:
- What steps is the Biden Administration taking to handle using cryptocurrency by terrorist organizations, together with however not restricted to Hamas, PIJ, and Hezbollah?
- Reviews point out that Hamas and PIJ collectively raised over $130 million in crypto between August 2021 and June 2023.12 Is that this according to the Administration’s estimates? Does the Administration have an estimate of the worth of crypto belongings
- remaining in wallets managed by these teams?
- Does the Administration have an estimate of what proportion of Hamas, PIJ, and Hezbollah’s whole funding strikes by way of cryptocurrency channels? Does the Administration know the way these funds are utilized and thru what means?
- What challenges does the Administration face in arresting the success of teams like Hamas in elevating funds by way of cryptocurrency? How is it addressing these challenges?
- Reviews recommend that PIJ held crypto accounts at Binance, and that PIJ “primarily used the stablecoin tether” to transact.
- What data does the Administration have about which actors are facilitating the sending and trade of digital belongings to and between terrorist organizations like Hamas, PIJ, and Hezbollah?
- Which actors are facilitating the trade of cryptocurrency for different belongings, together with these exchanged for weapons?
- The place are these actors primarily based?
- What actions has the Administration taken in opposition to these actors?
- What extra statutory instruments does the Administration want to handle the nationwide
- safety threats posed by illicit use of crypto by terrorist organizations?
- What extra assets does the Administration want to handle the nationwide safety
- threats posed by illicit use of crypto by terrorist organizations?
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