Biden Administration Faces Urgent Plea To Tackle Crypto-Financed Terrorism Amid Israel-Hamas Conflict

In a united call to action, Sen. Elizabeth Warren (D-Mass.) along with more than a hundred lawmakers voiced concerns about the dangerous potential of cryptocurrency in financing terrorism, spotlighting recent events in which Hamas reportedly raised millions in crypto to fund aggressive operations against Israel.

This bipartisan concern came amidst a broader global discussion on the implications of digital assets, a discussion that will be continued at Benzinga's Future of Digital Assets conference on Nov. 14.

The letter addressed to the Biden administration highlighted the alarming trend in which terrorist groups such as Hamas and Palestinian Islamic Jihad (PIJ) allegedly accumulated more than $130 million in crypto between August 2021 and June 2023.

The lawmakers stress the "clear and present danger" posed by the utilization of crypto for terror financing, particularly in the ongoing conflict between the two regions.

The documentation provided by the lawmakers presents a scenario where on the mentioned date, an onslaught involving approximately 2,200 rockets was launched towards Israel, coupled with a land invasion by hundreds of militants.

Also Read: Can Bitcoin Spot ETFs Unleash A Trillion-Dollar Crypto Boom? Here's What Data Shows

This manuever resulted in the loss of more than 1,200 lives and left 2,900 wounded as of Oct. 11, 2023.

The lawmakers, led by Sen. Warren, Sen. Roger Marshall (R-Kan.) and U.S. Rep. Sean Casten (D-Ill.), are urging the Biden administration to delineate its strategy to curb crypto-financed terrorism.

They are seeking detailed information on how the administration plans to tackle the national security threat by Oct. 31, 2023.

This call for action emphasizes the need for robust regulatory frameworks to monitor and control the flow of crypto assets to prevent their misuse in funding terrorism.

Read Next: Cyberattack Targets Nelly's X Account: Fans Warned Of Phishing Scheme

Join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!