The United States Financial Services Committee has written to US President Joe Biden over concerns that Hamas is utilizing cryptocurrency to conduct illicit activities.
“We write today to raise serious concerns about Hamas, a designated terrorist organization by the United States, and its ability to utilize digital assets to finance its operations,” the letter stated.
Committee Points To Digital Assets Use In Terrorism
According to the letter, the committee urges the president to take digital assets use in terrorism seriously. This comes after having received data information from blockchain analytics companies:
“This is particularly critical given the conflicting reports we have on Hamas’s fundraising campaign from blockchain analytics firms.2 Congress must understand the size, scope, and duration of Hamas’s digital asset operations, as well as whether the United States has had success in seizing illicit digital assets.”
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It further states that wallets linked to the organization received approximately $41 million in digital assets. Furthermore, Palestinian Islamic Jihad-linked digital wallets received approximately $93 million between August 2021 and June 2023.
However, it was only recently that BeInCrypto reported on that findings that terrorism financing is primarily conducted in fiat. Speaking to BeInCrypto, a chain analyst said:
“Terrorism financing is a very small portion of the already very small portion of cryptocurrency transaction volume that is illicit.”
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Meanwhile, the report highlighted that crypto inconveniences terrorist financing due to its transparency on blockchains.
“There’s a growing bipartisan coalition of senators who are committed to passing this bill. and fighting back against terrorism worldwide by choking off the financing.”
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