US Senators Highlight Iran's Crypto Mining as Potential National Security Threat
Summary:
US Senators Elizabeth Warren and Angus King have urged top officials to investigate potential national security threats posed by cryptocurrency miners in Iran, citing concerns that cryptocurrency could be used to bypass US sanctions. They have asked for data on Iran's crypto mining revenue, its potential use for money laundering, and its action in response to these threats. The senators emphasize that Iran might be funding terrorist organizations and attacks against Israel through cryptocurrency. They have referred to an Iranian report alleging the government's preference for Bitcoin, which is difficult to trace.
Senators Elizabeth Warren and Angus King from the United States have alerted officials about potential national security risks associated with Iran's cryptocurrency miners through a letter. On May 1, a letter was sent to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen by the senators. They urged the Biden administration to deliver details about potential connections between the Iranian government and its local cryptocurrency miners. Additionally, they expressed concerns over how digital currencies could be utilized to sidestep U.S. sanctions.
Senators Warren and King claim that Iran has been using cryptocurrency mining proceeds to support terrorist groups and to finance its attack on Israel in April. The letter read, "Iran's exploitation of cryptocurrency to bypass sanctions directly endangers our national security." It further stated the Iranian military's use of cryptocurrency to fund known terrorist outfits like Hezbollah which is thought to have played a role in the January 2024 drone attack in Jordan that claimed the lives of three U.S. service members. The letter warned that unless measures are taken, Iran will persist in using cryptocurrency to finance attacks against Israel.
Senators Warren and King asked U.S. officials to provide information on the earnings of cryptocurrency miners in Iran, its possible use for money laundering, and its action in response to threats against U.S. national security. They referenced an Iranian think tank report stating the government's preference for "freshly minted" Bitcoin (BTC) as being "harder to trace." It has been speculated that Bitcoin miners in Iran could have generated around $1 billion in revenue in 2021.
Since 1979, Iran has been subject to a variety of sanctions by the United States and international regulators. Earlier, Iran's officials had taken a strong stance against cryptocurrency mining due to electricity usage concerns, but legalized the activity in 2019. Senator Warren, a vocal critic of cryptocurrency in the U.S. government, links the technology with illegal drug trafficking, terrorism, and negative economic impacts. She is set to run for re-election in November and could potentially face a challenge from Republican candidate and cryptocurrency lawyer John Deaton for her Massachusetts Senate seat.
Published At
5/2/2024 10:30:00 PM
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