In a letter sent to the White House on Tuesday, a bipartisan group of lawmakers warned that Hamas is funding its attack on Israel through crypto and that the Biden administration must act quickly to reduce the effectiveness of that attack.
More than 100 lawmakers, led by Senators Elizabeth Warren, Roger Marshall, and Representative Sean Caster, signed a document condemning Hamas and Palestinian Islamic Jihad's use of crypto to finance terrorist acts and evade US sanctions. The letter sent to the US Treasury Department and the White House expressed "serious concerns" about Hamas' operations and requested the Biden administration to share figures on the extent of its dependence on crypto.
Bipartisan lawmakers want to know how much crypto remains in Hamas-controlled wallets, how much the militant group relies on crypto to fund its operations, and information about organizations and individuals facilitating the use of crypto.
“Congress and this administration need to take strong action to comprehensively address the risks of illicit finance before cryptocurrency is used to finance another tragedy,” the letter said.
Hamas has collected at least $44 million in cryptocurrencies in the last two years
The letter comes just after Israeli police announced the seizure of Hamas-owned crypto wallets once again. International sanctions have forced it to rely on digital assets for years to finance its operations. According to crypto analysis firm BitOK, recent reports indicate that the militant group raised $41 million in cryptocurrency between August 2021 and June 2023. It is also estimated that the Palestinian Islamic Jihad received $93 million in funding during the same time period.
Senate Banking Chairman Sherrod Brown has vowed to examine the role of cryptocurrency in the Israel-Hamas war. But the letter also comes amid a growing rally from Senator Warren to pass a bill that would tighten anti-cryptocurrency laundering rules in the US; This bill faced backlash from crypto companies. Warren's recent attempts to align crypto legislation with Hamas have sparked the bill's potential.
“The danger of crypto-financed terrorism is real and should be an urgent priority for Congress,” Warren said in an interview (via Politico ). “There is a growing bipartisan coalition of senators committed to passing this bill and combating terrorism around the world by cutting funding.”
President Biden will go to Israel and meet with Prime Minister Netanyahu. The summit planned to be held with Palestinian and Egyptian leaders in Jordan was canceled after a hospital in Gaza was hit by missiles, killing at least 500 people. Israel has been accused by Hamas of being behind the attack – but officials deny responsibility and instead say the missile belongs to Israel. Misfired by Palestinian Islamic Jihadists in Gaza.
