Elizabeth Warren's Anti-Crypto Campaign Amplified Amid Israel-Hamas Conflict
Summary:
Senator Elizabeth Warren capitalizes on mainstream media's reports to propagate her campaign against cryptocurrencies, highlighting their role in the Israel-Hamas conflict. Despite Bitcoin's minor role in terrorist funding, Warren and over 100 Congress members have written to the Biden administration, asking for stringent regulations on Hamas’ use of cryptocurrency for fundraising. The article concludes by underscoring that attention should focus more on traditional financial systems rather than crypto in counter-terrorism efforts.
Elizabeth Warren, the senator from Massachusetts, is once again making headlines. This time, she's capitalizing on mainstream media's incendiary reports, such as "How cryptocurrency fueled Hamas' terrorist attack" by Deutsche Welle, to continue her campaign against digital currencies. Cryptocurrency's significance in the ongoing Israel-Hamas conflict was spotlighted on October 10 this year when Israeli authorities restricted the crypto accounts used by fundraisers of Hamas. However, this wasn't a first for them; Israeli terrorism financing watchdog NBCTF intercepted crypto wallets tied to Hamas' funding drive earlier in 2021. Though Binance, a crypto trading platform, supported international counter-terrorism forces during these confiscations, Warren and over a hundred other U.S. representatives penned a letter to the Biden administration, calling for stringent policies on Hamas’ use of cryptocurrency for fundraising despite their struggles to amass crypto donations.
Further in the letter, Warren noted how Hamas succeeded in generating millions via digital currencies in the months leading to their offensive on Israel. The congress members also urged the Biden administration to report on the digital assets remaining in Hamas' control, the proportion of Hamas' activities financed through crypto, and any insights on the individuals enabling Hamas and other extremest groups to transact in digital currencies.
On October 18, the U.S. Treasury Department blacklisted the Gaza-based cryptocurrency broker, "Buy Cash Money and Money Transfer Company (Buy Cash)", revealing it to be part of a minor $2000 Bitcoin transaction, a minuscule sum when contrasted with the hundreds of millions of dollars financing Hamas.
“When it comes to Hamas, our goal remains to cease their fundraising initiatives and stop them from inflicting terror on Israeli citizens," said Janet Yellen, the Treasury Secretary. That will involve imposing sanctions, and coordinating efforts with our allies and partners to track down, freeze, and seize any Hamas-related assets under their control."
The fears around cryptocurrency usage by extremists are inflated, given that traditional currencies like the dollar remain the primary tool for illegal money transfers, with crypto playing a considerably small part. Furthermore, terrorist groups have no significant need for blockchain technology, particularly when they can leverage aid funds from the global community. On the contrary, Hamas predominantly uses banking systems, money service operations, and informal “hawala” transfers as their primary funding sources. The group only began seeking crypto donations publicly in 2019 via their Telegram channel.
Kadan Stadelmann, the CTO of the Komodo Platform, underlines that the main focus of counter-terrorism should not be honed on the use of cryptocurrencies given the diverse fundraising approaches of these groups. He comments on the transparent nature of crypto, affirming that whenever Hamas resorts to digital currencies, such actions get noticed immediately due to recent freezing measures. Warren's crusade against digital currencies, he posits, is a distraction from the more urgent discussions regarding how terrorist groups find their financial support through traditional financial systems.
This write-up serves informational purposes only and should not be treated as legal or investment counsel. The views, thoughts, and opinions shared here are exclusively the author’s, and don't necessarily reflect or represent Cointelegraph's views and opinions.
Published At
10/24/2023 10:08:16 PM
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