US Congress looks for answers on Hamas Crypto funding

Following a report from the Wall Street Journal that Hamas has received over $40 million in crypto currencies in the last two years, Congress is asking the current administration about the role cryptocurrency played in financing Hamas’s surprise attacks on Israel earlier this month.

A letter, led by Senators Elizabeth Warren (Democrat, Massachusetts and Roger Marshall (Republican, Kansas), requests information from Treasury Department under secretary Brian Nelson and White House national security adviser Jake Sullivan about the administration’s plans to address Hamas’s crypto financing capabilities.

“Congress and this administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy,” the letter stated.

The Wall Street Journal article also claims that another militant group, Palestinian Islamic Jihad, received as much as $93 million in cryptocurrencies.

On Wednesday, the Biden administration issued sanctions aimed at disrupting Hamas' funding, singling out a Gaza-based cryptocurrency exchange.

"We will continue to take all steps necessary to deny Hamas terrorists the ability to raise and use funds to carry out atrocities and terrorize the people of Israel," said Treasury Secretary Janet Yellen in a statement.

Tether, which issues the world’s largest stablecoin of the same name, says it has frozen 32 crypto wallets, containing $873,118.34 that were found to be linked to illicit activity in Israel and Ukraine.  The company states that they have been working with the National Bureau for Counter Terror Financing of Israel to counter cryptocurrency-funded terrorism and warfare.

“We eagerly anticipate continued collaboration with global law enforcement agencies as part of our commitment to global security and financial integrity,” said Tether CEO, Paolo Ardoino.