US Treasury Deputy Secretary Says Crypto Not A Main Source Of Funding For Terrorists

U.S. Deputy Treasury Secretary Wally Adeyemo debunked the notion that cryptocurrencies predominantly finance terrorist organizations.

In a conversation with RUSI's Centre for Financial Crime and Security Studies, he clarified traditional banking systems remained the primary channel for such funding.

Recent media buzz, including reports from the Wall Street Journal, suggested Hamas accumulated significant funds through cryptocurrency.

This was refuted by blockchain analytics company Elliptic, which asserted there was no substantial evidence supporting such claims about Hamas's crypto funds.

Highlighting his perspective on the matter, Adeyemo stated, "Today I would say that … the use of crypto is not the vast majority of the ways that these groups are funded."

He elaborated on the evolution of financial systems, noting that while terrorist organizations initially relied on conventional banks, they later adopted online payment systems such as Venmo and PayPal Holdings Inc PYPL.

Adeyemo stressed the importance of collaborating with these platforms to curb misuse.

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His insights pave the way for relevant discussions at the upcoming Benzinga's Future of Digital Assets conference on Nov. 14, where the dynamics of cryptocurrencies and their impact on various sectors, including security concerns, will likely be explored.

Adeyemo emphasized the potential risks associated with the growing popularity of cryptocurrencies.

"Now that evolution continues and the next source of that is cryptocurrency … We need this industry to work with us to ensure that we are preventing cryptocurrency from being used and abused by Hamas and these groups going forward."

He concluded with a warning about terror groups being quick to leverage emerging technologies for illicit fund transfers, reaffirming the Treasury Department's commitment to thwarting such endeavors, especially targeting crypto mixers.

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Photo: U.S. Embassy, New Dehli, Flickr Creative Commons