US-Lawmakers

US Legislators propose actions to curb crypto funding of Hamas

Following the Palestinian militant group's fatal attack in Israel earlier this month, a bipartisan coalition of legislators is pressing the Biden administration to quickly crack down on the use of cryptocurrency by Hamas and its allies.

In a letter sent to the US Treasury Department and the White House on Tuesday, 105 lawmakers expressed "grave concern" that Hamas and an affiliated group called Palestinian Islamic Jihad were using digital assets to fund their operations and avoid US sanctions. The letter was led by Senators Elizabeth Warren, Roger Marshall, and Representative Sean Casten.

"Congress and this administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy," the author of the letter wrote.

In an Oct. 10 statement, Israeli police stated they had frozen multiple cryptocurrency accounts intended to solicit donations for Hamas. Reuters reported in May that Israel has confiscated over 190 crypto accounts at Binance since 2021, including dozens belonging to Palestinian companies linked to Hamas.

Binance stated that it was "working closely with international counter-terrorism authorities" on the seizures.

The cryptocurrency community has promoted digital assets as vehicles for anonymous transactions since its conception, and a series of government enforcement proceedings for fraud, money laundering, and unregistered coin offers has put the sector in the limelight.

According to Reuters, Hamas employs a worldwide finance network to channel support from charities and friendly states, including cryptocurrency.

According to blockchain specialists TRM Labs, Israeli police have confiscated "tens of millions of dollars" in cryptocurrency from Hamas-linked addresses in recent years.

The lawmakers asked the Biden administration to provide estimates on the value of crypto assets still held in Hamas-controlled wallets, how much of Hamas' operations are funded through crypto, and any information it has on the actors facilitating crypto transfers to and from Hamas and other militant groups.