{"id":24062,"date":"2023-10-24T22:55:59","date_gmt":"2023-10-24T22:55:59","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/elizabeth-warren-uses-hamas-as-her-newest-scapegoat-in-war-on-crypto\/"},"modified":"2023-10-24T22:56:01","modified_gmt":"2023-10-24T22:56:01","slug":"elizabeth-warren-uses-hamas-as-her-newest-scapegoat-in-war-on-crypto","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/elizabeth-warren-uses-hamas-as-her-newest-scapegoat-in-war-on-crypto\/","title":{"rendered":"Elizabeth Warren uses Hamas as her newest scapegoat in war on crypto"},"content":{"rendered":"

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Massachusetts Sen. Elizabeth Warren is at it again. With mainstream press outlets including Germany\u2019s Deutsche Welle running sensationalist headlines \u2014 \u201cHow cryptocurrency fueled Hamas\u2019 terrorist attack\u201d \u2014 Warren is using Hamas\u2019 attack on Israel to fuel her own war on cryptocurrency.<\/p>\n

Crypto\u2019s role in the conflict came into focus on Oct. 10, when Israeli police froze crypto accounts used for donations to Hamas. It was not the first time. In 2021, Israel\u2019s Terror Financing of Israel (NBCTF) seized crypto wallets linked to a Hamas fundraising campaign. <\/p>\n

While Binance worked \u201cclosely with international counter-terrorism authorities” on the seizures, Warren led a group of more than 100 U.S. lawmakers in sending the Biden administration a letter letter asking it to crack down on Hamas and its affiliates\u2019 cryptocurrency wallets \u2014 despite the organization\u2019s relative struggle to raise crypto as part of its fundraising efforts. <\/p>\n

\u201cCongress and this administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy,\u201d the letter said.<\/p>\n

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Hamas raised millions via crypto in the months leading up to their attack on Israel. @RogerMarshallMD<\/a>, @RepCasten<\/a> and I are leading 100+ lawmakers urging the Biden admin to address crypto-financed terrorism.https:\/\/t.co\/JksREJ3Dgs<\/p>\n

\u2014 Elizabeth Warren (@SenWarren) October 18, 2023<\/a><\/p><\/blockquote>\n

The lawmakers requested that the Biden administration also provide estimates on the value of crypto assets that remain in Hamas-controlled wallets, how much of Hamas\u2019 operations are funded through crypto, and any information it has on the actors facilitating the sending of crypto to and from Hamas and other militant groups.<\/p>\n

The U.S. Treasury Department sanctioned Gaza-based crypto broker \u201cBuy Cash Money and Money Transfer Company (Buy Cash)\u201d on Oct. 18, revealing it had been used for a whopping $2,000 Bitcoin transaction \u2014 a paltry sum compared to the hundreds of millions of dollars used to fund Hamas. One sanctioned wallet had $16 in it.<\/p>\n

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The treasury department has sanctioned a Hamas-linked wallet as Politico reports that “Crypto\u2019s role in financing Hamas\u2019 activity has emerged as a hot issue for lawmakers”<\/p>\n

The sanctioned wallet has $16 in it and made its last transfer 18 months ago pic.twitter.com\/IbsGfyZ3zl<\/a><\/p>\n

\u2014 Conor (@jconorgrogan) October 18, 2023<\/a><\/p><\/blockquote>\n

\u201cWe 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,\u201d said Treasury Secretary Janet Yellen. \u201cThat includes by imposing sanctions and coordinating with allies and partners to track, freeze, and seize any Hamas-related assets in their jurisdictions.\u201d<\/p>\n

Terrorists\u2019 use of cryptocurrency has been dramatically overstated. The dollar remains the key tool for money launderers, with crypto playing a relatively tiny role. Why would terrorists use blockchain when its transactions can be tracked? Beyond this, terrorists arguably have little need for crypto when they have the ability to siphon aid funds from the international community. The United Nations spent nearly $4.5 billion in Gaza from 2014-2020, including $600 million in 2020 alone, even as Hamas reportedly turned European Union-funded water pipelines into home-made rockets.<\/p>\n

Elliptic.co, a blockchain-analysis provider, suggested in a report this month that Hamas did receive cryptocurrency around the time of the attack. However, Hamas has not used crypto as a primary source of funding, instead opting to use the banking system, money service businesses, as well as informal \u201chawala\u201d transfers. This global financing network\u00a0 launders funds from charities and friendly nations to Hamas. Hamas started publicly seeking funds in crypto in 2019 through its Telegram channel. The group now uses payment processors to create crypto addresses and hide its cryptocurrency wallets. <\/p>\n

The bulk of anti-terrorism efforts should not focus on terrorist use of cryptocurrency, considering the diverse ways these organizations procure funds. \u201cThere\u2019s not one financing method for Hamas or other terrorist organizations. They\u2019re opportunistic and adaptive,\u201d former CIA analyst Yaya Fanusie, now an adjunct senior fellow with the Center for a New American Security, said in an interview with CNN. \u201cEfforts to stop them are a constant game of cat-and-mouse.\u201d<\/p>\n

Due to crypto\u2019s transparent nature, it\u2019s proven to be no secret when Hamas uses crypto, as made clear by the recent crypto freezing action. When it does use crypto, Hamas generally receives small-dollar donations, ultimately representing a small fragment of the organization\u2019s considerable $300 million annual budget. It\u2019s disingenuous to state that terrorist use of crypto is a credible threat relative to the fiat-denominated funds moving through these organizations. <\/p>\n

Warren\u2019s anti-crypto pet project appears to be a red herring, and ultimately distracts from more fruitful conversations about how terrorist organizations actually raise funds through the traditional financial system.<\/p>\n

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Kadan Stadelmann<\/strong> is a blockchain developer and the Komodo Platform\u2019s chief technology officer. He graduated from the University of Vienna in 2011 with a degree in information technology before attending the Berlin Institute of Technology for technical informatics and scientific computing. He joined the Komodo team in 2016.<\/p>\n<\/div>\n

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<\/div>\n