The US lawmakers have demanded a crackdown on crypto following the movement of terrorist organizations to raise funds using the crypto platforms.
The earlier assumption that one of the fundraising sources used by these terrorist groups might be the crypto, was already there. However, the opposition to crypto gained mass momentum when media reports surfaced stating that the funds for one of the terror attacks were raised through the crypto platform. The media reported that the attack that Hamas, the Palestinian Islamic militant group launched on 7 October on Israel, was funded through cryptocurrency platforms. This particular attack impacted thousands of people causing more than 1,200 deaths of both soldiers and citizens. Also. Hamas took in a massive amount of people as its hostage.
Who Is Against It?
Currently, senators Roger Marshall, Elizabeth Warren, and Rep Sean Casten are in the front row of those who have called for a crackdown on crypto. Two days ago, on 18 October, Warren made public comments on this.
The senator was talking with the press and said that a letter had already been written to two of the senior officials in the Biden administration. The letter contains the signatures of more than 100 lawmakers and was written to Brian Nelson, the Under Secretary for Terrorism and Financial Intelligence, and Jake Sullivan, the National Security Advisor.
What Are Their Concerns?
Elizabeth Warren said that it was alarming and it should be a wake-up call for all the lawmakers and regulators to realize that the digital wallets connected to the terrorist organization Hamas had already received more than millions in crypto. Warren also called out Congress and the present Administration to take strong actions that will address the risks and concerns on the crypto illicit risks before it is used to conduct finance that can cause yet another tragedy.
The lawmakers expect a response to the signed letter that they have sent before the last day of this month, 31 October. They have also appealed to the Biden administration to make an estimate on the approximate value of the crypto assets that are present in the crypto wallets that are in relation to Hamas.
The letter also asks the administration to estimate the number of terror finances that are right now on crypto and also asks to provide information on whether there were any bad actors who actually facilitated the crypto translation of Hamas and other related terror organizations.
Be more familiar : Hamas Is Using Cryptocurrencies To Fuel Its War Machine
Earlier this month the cyber police unit of Israel had frozen several crypto accounts that were associated with Hamas, with the help of the cryptocurrency exchange platform, Binance.
According to the report from the Wall Street Journal, it is estimated that the collective amount that Hamas and the Palestinian Islamic Jihad (PIJ) have received is approximately 134 million US dollars, since the year 2021.
A report released from Israel states that the presence of the accounts in the cryptocurrency was encouraging individuals as well as other organizations to donate towards the interest of the terror organizations which leads to the strengthening of terror financing.