Crypto’s Limited Role in Hamas Terror Financing: US Treasury
According to a United States Treasury official, cryptocurrencies have only played a minor role in the funding of militant groups Hamas and Palestinian Islamic Jihad. The official, Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson, stated that a previous report claiming the groups received tens of millions in crypto was inaccurate. Nelson clarified that the reported amounts referred to the total in various wallets, not specifically what was going to the terrorist organizations.
Representative Tom Emmer sought further clarification during a hearing, asking if the reported amounts were what individuals held in their wallets, rather than what was directly going to Hamas and Palestinian Islamic Jihad. Nelson agreed, stating that this was the most likely scenario. He also asserted that despite the availability of cryptocurrencies, terrorists still prefer to use traditional financial products and services.
In October, The Wall Street Journal published a report stating that Palestinian Islamic Jihad received $93 million in crypto, while Hamas received about $41 million between August 2021 and June 2023. Blockchain analytics firm Elliptic, which provided the data cited by the Journal, disputed the report, stating that there was no evidence to support such large amounts being raised through cryptocurrency fundraising. The figures for Palestinian Islamic Jihad were revised to $12 million.
Over 100 U.S. lawmakers, led by Senator Elizabeth Warren, have used the Journal’s report as a basis for advocating legislation aimed at curbing illicit crypto use for national security purposes. The crypto industry has pushed back, arguing that such measures would have minimal impact and only drive the industry overseas.
During the House hearing, Emmer questioned the extent to which the militant groups were able to access and utilize cryptocurrency. Nelson responded by stating that they did not expect the amount to be significant. Emmer then asked Nelson if the Treasury had a responsibility to correct the record regarding crypto and terrorist financing, as lawmakers were basing legislation on false figures. Nelson confirmed that the Treasury was monitoring terrorist use of cryptocurrencies and requested additional tools and resources from Congress to combat illicit finance in the virtual asset markets.
8 thoughts on “Crypto’s Limited Role in Hamas Terror Financing: US Treasury”
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So the Treasury is requesting additional tools and resources from Congress to combat illicit finance in the virtual asset markets? Why didn’t they have those in place already? It feels like they’re always behind.
I can’t believe that lawmakers are basing legislation on false figures. This is a serious issue that requires accurate information and thoughtful decision-making.
It’s crucial for the Treasury to monitor and combat illicit finance in the virtual asset markets, and I hope Congress provides the necessary tools and resources. 🏛️💼
It’s frustrating to see that even with the availability of cryptocurrencies, terrorists still prefer traditional financial methods. We need to find a way to cut off all their funding sources.
It’s disheartening to hear that measures to curb illicit crypto use would only drive the industry overseas. We should be finding ways to strengthen our own regulations, not push the problem elsewhere.
If the figures cited in The Wall Street Journal report are inaccurate, then we need to question the credibility of blockchain analytics firm Elliptic. This just adds to the confusion surrounding this issue.
This article raises important questions about the extent of terrorist access to and utilization of cryptocurrency. More research and investigation is needed. 🧐🔬
Senator Elizabeth Warren and other lawmakers should reconsider their stance on legislation based on inaccurate figures. Let’s focus on evidence-based policies. 🤝🗽