YEREVAN (CoinChapter.com) — The U.S. Treasury Department is looking into $165 million worth of cryptocurrency transactions to see if they are linked to Hamas, notably after they attacked Israel in October 2023.
The attack killed 1,200 people and started a war in Gaza, and now reports say over 30,000 Palestinians have died. Lawmakers are trying to figure out how terrorist groups like Hamas might use digital money along with traditional money.
The Wall Street Journal shared the investigation, mentioning that the Treasury’s Financial Crimes Enforcement Network (FinCEN) checked suspicious activities reported from January 2020 to October 2023. They want to find transactions connected to militant actions, but it’s still hard to say exactly how much cryptocurrency these groups used.
Lawmakers Probe Hamas’ Crypto Financing
This investigation has caught the attention of lawmakers worried about terrorists using cryptocurrencies.
After the Wall Street Journal suggested Hamas used cryptocurrency, lawmakers, including House Majority Whip Tom Emmer (R-Minn.) and House Financial Services Committee Chair Patrick McHenry (R-N.C.), asked the Treasury for more details last November. They want to understand better how Hamas uses digital money to ensure they can effectively stop terrorism financing.
Adeyemo Cites Crypto as an Emerging Terror Finance Threat
Deputy Treasury Secretary Adewale Adeyemo wrote a letter to the leaders of the Senate Banking and House Financial Services Committees. He discussed the ongoing work to figure out these connections. Adeyemo said the $165 million may not all be linked to Hamas.
This is because the transactions have both cash and digital money, and only part might be used for terrorism. FinCEN is checking over 200 cryptocurrency addresses. This shows it’s hard to track how terrorists use digital money.
Adeyemo also worries that terrorist groups are finding new ways to get money. He thinks that although these groups usually use regular banks, they might start using cryptocurrencies more as it gets harder for them to use traditional banking. This change could make it tougher for the government and banks to stop money from going to terrorists without limiting the good things cryptocurrencies can do.
The Treasury is working hard to understand and control the use of cryptocurrencies in terrorism. They aim to stop harmful uses of digital money. At the same time, they want to let it help the economy grow.
